Gold analysis for May 07, 2015 Market Analysis Review

Overview:

Since our last analysis, gold has been trading downwards. The price tested the level of $1,180.60 in a high volume. According to the daily time frame, we can observe supply in a volume above the average but with weak price action. The short-term trend is neutral. According to the H4 time frame, we can observe supply in a high volume. Our Fibonacci retracement 61.8% at the price of $1,181.00 is on the test. I am still expecting bullish movement so my advice is to focus on buying positions. The first resistance level is around the price of $1,200.00. According to the 30-minute time frame, there is still a valid inverted head and shoulders formation (bullish).

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,195.00

R2: 1,197.40

R3: 1,201.90

Support levels:

S1: 1,187.90

S2: 1,185.60

S3: 1,182.10

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

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