Gold analysis for May 01, 2015 Market Analysis Review

Overview:

Since our last analysis, gold has been trading downward. The price tested the level of $1,176.95. I am waiting for a clear direction and stong volume. According to the daily time frame, we can observe supply in an ultra high volume (selling climax), which is a sign that selling at this stage looks risky. Our Fibonacci retracement 61.8% (support) at $1,174.00 is again on the test. Major resistance is seen around the level of $1,220.00. The short-term trend is bearish. According to the H4 time frame, we can observe supply in a volume below the average . I placed Fibonacci expansion to find potential resistance levels and got Fibonacci expansion 61.8% at $1,225.00, Fibonacci expansion 100% at $1,256.00, and Fibonacci expansion 161.8% at $1,306.00. Anyway, if the price breaks the level of $1,175.00 in a high volume, we may see potential testing of the level of $1,148.00 (swing low like support).

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,200.50

R2: 1,208.00

R3: 1,220.90

Support levels:

S1: 1,176.00

S2: 1,169.20

S3: 1,157.00

Trading recommendations: I am neutral about gold. Anyway, selling looks risky around the price of $1,174.00 (Fibonacci retracement 61.8%). Watch for potential selling opportunities below the price of $1,174.00.

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