Overview:
Since our last analysis, gold has been trading downwards, the price tested the level of 1,251.29 on high churn volume (high volume but low range of the bar) according to the Daily chart. Since the price didn't break our resisntace level at 1,305.00, we saw strong downward pressure. Anyway, selling still looks very risky since we are at the support level and we have reached selling high (ultra high volume) on the low ground. I have placed Fibonacci retracement levels to find a potential end of a bearish corrective phase and I got submajor Fibonacci expansion level 100% at the price of 1,251.00 and major Fibonacci expansion 100% at the price of 1,217.00. According to the 1H timeframe, we spotted intraday resistance level at the price of 1,260.00 (Sswing high) and intraday support at the price of 1,251.00 (swing low, Fibonacci expansion 100%). Be careful with selling Gold at this stage since the price is near the support level.
Daily pivot Fibonacci points:
Resistance levels:
R1: 1,260.53
R2: 1,262.91
Support levels:
S1: 1,252.81
S2: 1,250.43
Trading recommendation: Trading the metal, be careful with short-term selling since the price is near support.
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 30, 2014 . Thanks for your support on Gold analysis for May 30, 2014
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