FX.co ★ Gold analysis for October 03, 2016

Since our previous analysis, gold has been trading sideways at the price of $1,316.50. According to the 4H time frame, I found a large falling wedge formation (bullish formation). The price is in the middle of the falling wedge. My advice is to watch for a breakout of the wedge formation (current buy point at $1,343.50). Anyway, if the price breaks the level of $1,310.00 before the larger upward movement, Gold may again visit a lower diagonal around the price of $1,294.00. According to the Daily time frame, I found successful rejection of 100SMA, which is a sign that buyers are in control at this point.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,320.30

R2: 1,321.00

R3: 1,322.00

Support levels:

S1: 1,318.00

S2: 1,317.80

S3: 1,316.75

Trading recommendations for today: Watch for breakout of wedge formation to confirm upward continuation.