Gold analysis for May 06, 2015 Market Analysis Review

Overview:

Since our last analysis, gold has been trading upwards. As we had expected, the price tested the level of $1,199.58 in a high volume. According to the daily time frame, we can observe demand in a volume above 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 supply in a high volume. 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. I placed Fibonacci retracement to find potential support levels. I got Fibonacci retracement 38.2% at the price of $1,188.00, Fibonacci retracement 50% at the price of $1,184.00 and Fibonacci retracement 61.8% at the price of $1,181.00.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,197.00

R2: 1,201.00

R3: 1,206.90

Support levels:

S1: 1,187.00

S2: 1,183.50

S3: 1,178.10

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

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