FX.co ★ Gold analysis for February 06, 2017

Recently, gold has been trading upwards. As I expeted, the price tested the level of $1,225.05. According to the 15M time frame, I found a hidden unconfirmed bearish divergence in the background, which is a sign of potential weakness. My advice is to watch for potential selling opportunities. Anyway, to confirm potential downward movement, I would wait that price breaks support at $1,221.50. If the price breaks the level of $1,221.50, Gold may test the level of $1,215.00. Anyway, if the price breaks the resitance at $1,225.05, gold may visit the level of $1,229.50 (Fibonacci expansion 100%). Trend is still bullish but there is bearish divergence in progres.

Fibonacci pivot points :

R1: 1,224.75

R2: 1,225.95

R3: 1,227.90

Support levels:

S1: 1,220.90

S2: 1,219.75

S3: 1,217.85

Trading recommendations for today: watch for potential selling opportunities.