Overview:
Since our last analysis, gold has been trading upwards. The price tested the level of 1,249.46. We can observe rejection from our resistnace level at the price of 1,244.00 (Fibonacci retracement 38.2%). I have placed Fibonacci retracement to find potential support levels and I got Fibonacci retracement 38.2% at the price of 1,224.00. According to the 4H timeframe, we can observe buying climax, which is a sign that buying looks risky. On the mid-term prospective, price was rejected from our major Fibonacci expansion 100% at the price of 1,193.00, which caused price to start bullish phase. Be careful when buying and watch for potential selling opportunities. Any larger supply may confirm futher bearish movement.
Daily pivot Fibonacci points:
Resistance levels:
R1: 1,249.84
R2: 1,256.52
R3: 1,267.33
Support levels
S1: 1,228.22
S2: 1,221.54
S3: 1,210.73
Trading recommendations: Buying still looks risky since gold is near resistance level.
The material has been provided by InstaForex Company - www.instaforex.com
For detail explanation and best discovery on daily market trends and news you may visit via Gold: analysis for October 16, 2014 . Thanks for your support.
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