Gold analysis for May 05, 2015 Market Analysis Review

Overview:

Since our last analysis, gold has been trading upward. As we expected, the price tested the level of $1,196.08 in a high volume. According to the daily time frame, we can observe demand in a volume below the average. Our Fibonacci retracement 61.8% (support) at $1,174.00 was held successfully. Major resistance is seen around the level of $1,220.00. The short-term trend is bullish. According to the H4 time frame, we can observe demand in a high volume with strong price action. I placed Fibonacci expansion to find potential resistance levels and got Fibonacci expansion 61.8% at $1,220.00, Fibonacci expansion 100% at $1,250.00, and Fibonacci expansion 161.8% at $1,300.00. According to the 30-minutes time frame, we can observe inverted head and shoulders formation, which is a good sign for futher bullish movement.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,191.00

R2: 1,194.35

R3: 1,200.00

Support levels:

S1: 1,179.00

S2: 1,175.20

S3: 1,169.00

Trading recommendations: Be careful when selling gold at this stage and watch for potential buying opportunities (buy on dips).

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

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