Overview:
Since our last analysis, gold has been trading upwards, the price tested the level of 1,306.50 on volume below the average. Our previous analysis is still active and we've got good progress. According to the daily chart, we can observe demand bar on volume below the average. Gold tested and rejected from our submajor Fibonacci retracement 38.2% at the price of 1,302.00. According to the short-term prospective, Gold is in progress of bearish corrective phase and I've placed Fibonacci Retracement to find the first down station. I've got Fibonacci Retracement 61.8% at the price of 1,263.00. If the price breaks the level of 1,279.00 on higher volume, we may see testing the level of 1,263.00. According to the H1 timeframe, we can observe demand on ultra high volume (buying climax) and abcd bullish corrective form. I placed Fibonacci extension levels to find the potential end of bullish corrective phase and I have got Fibonacci extension 100% at the price of 1,298.40 and Fibonacci extension 161.8% at the price of 1.308.90. If the Gold breaks the level of 1,309.00 on high volume, next major resistance may be at the price of 1,321.00 ( major Fibonacci retracement 38.2%). Since we got buying climax according to the 4H timeframe, buying at this stage looks very risky, watch for selling opportunities after the bullish correction.
Daily pivot Fibonacci points:
Resistance levels:
R1: 1,304.39
R2: 1,305.15
R3: 1,306.37
Support levels:
S1: 1,301.95
S2: 1,301.19
S3: 1,299.97
Trading recommendation: Trading the metal, be careful with short-term buying at this stage since gold is in progress of major bearish corrective phase. Watch for selling opportunities after retracement.
The material has been provided by InstaForex Company - www.instaforex.com
For detail explanation and best discovery on market trends you may visit via GOLD analysis for April 07, 2014 . Thanks for your support on GOLD analysis for April 07, 2014
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