Overview
Since our last analysis, gold has been trading upward, the price tested the level of 1,303.58 on volume just above the average according to the daily chart. As you can see in the chart, our support level is held at 1,277.00 successfully, and that caused price to start upward movement and test the level of 1,303.58. According to the 4H timeframe, we can observe weak supply on the average volume, which is a sign that selling at this stage looks risky. I placed Fibonacci retracement to find potential end of bearish corrective phase and i got Fibonacci retracement 61.8% at the price of 1,288.00. I found potential resistance level at the price of 1,304.00 (swing low). If the price breaks the level of 1,304.00 on higher volume, we may see possible tetsting the level of 1,315.00 (previous swing high).
Daily pivot Fibonacci points:
Resistance levels:
R1: 1,302.22
R2: 1,307.32
R3: 1,315.57
Support levels:
S1: 1,285.72
S2: 1,280.62
S3: 1,272.37
Trading recommendation: Trading the metal, be careful with short-term selling since our support level at the price of 1,277.00 held successfully
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 May 13, 2014 . Thanks for your support on Gold analysis for May 13, 2014
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