Gold : analysis for October 28, 2014 Market Analysis Review

Overview:

Since our last analysis, gold has been trading upwards. As we expected, the price tested the level of 1,235.40 in a volume above average. Since our submajor Fibonacci retracement 38.2% at the price of 1,227.00 held successful, that action led the price to start upward movement. According to the daily time frame, we can observe supply in a volume below average. I have placed Fibonacci retracement to find resistance levels and I got Fibonacci retracement 38.2% at the price of 1,234.85 (currently on the test) and Fibonacci retracement 61.8% at the price of 1,242.00. If the price breaks the level of 1,234.00 in a high volume and healthy price action , we may see testing the level of 1,242.00. Anyway, if we see larger reaction from sellers aroud our resistance, a bearish phase will be possible.

Daily pivot Fibonacci points:

Resistance levels:

R1: 1,231.51

R2: 1,233.13

R3: 1,235.77

Support levels

S1: 1,226.23

S2: 1,224.61

S3: 1,221.97

Trading recommendations: Selling gold at this stage still looks risky since we got strong demand in the background.

The material has been provided by InstaForex Company - www.instaforex.com



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