Overview:
Since our last analysis, gold has been trading upwards, as we expected, the price tested the level of 1,303.41 on high volume according to the 4H time frame. According to the Daily timeframe, we can observe indecision bar and strong bullish reactions in the background from our support 1,277.00 on higher volume, which is a sign that short-term selling looks very risky. According to the 4h timeframe, we can observe supply on average volume, which is still not enough for larger downward movement. We can conclude that the price of 1,305.00 (swing low) is strong resistance and just if the price breaks that level on hgiher volume we may see further bullish continuation. Be careful with selling since we got the second rejection from our Fibonacci zone in the background.
Daily pivot Fibonacci points:
Resistance levels:
R1: 1,301.75
R2: 1,305.05
R3: 1,310.40
Support levels:
S1: 1,291.05
S2: 1,287.75
S3: 1,282.40
Trading recommendation: Trading the metal, be careful with short-term selling since we've got strong rejections from our Fibonacci ratios.
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 23, 2014 . Thanks for your support on GOLD analysis for May 23, 2014
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