Overview:
Since our last analysis, gold has been trading downwards, the price tested the level of 1,242.04 on volume above the average according to the Daily chart. Since the price has broke support level (1,251.00), we saw bearish pressure. I have placed Fibonacci expansion to find potential end of bearish movement and I've got submajor Fibonacci expansion 161.8% at the price of 1,215.00 and major Fibonacci expansion 161.8% at the price of 1,143.00. According to the 1H timeframe, we can observe volume leveling off on the swing low, which is a sign that we may see possible bullish correction, before we continue with more bearish movement. Resisntace levels are the the price of 1,251.00 (swing low) and the price of 1,269.00. Be careful with selling Gold at this stage since the price is near the support level. Build selling positions just after bullish correction. Anyway, to confirm further bearish movement price needs to break the level of 1,240.00 (swing low).
Daily pivot Fibonacci points:
Resistance levels:
R1: 1,249.92
R2: 1,250.82
R3: 1,252.27
Support levels:
S1: 1,247.02
S2: 1,246.12
S3: 1,244.67
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 June 02, 2014 . Thanks for your support on Gold analysis for June 02, 2014
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