Gold analysis for October 20 , 2015 Market Analysis Review

Overview:

Since our last analysis, gold has been trading upwards. The price tested the level of $1,174.00 in a high volume. The short-mid term trend is still upward. In the daily time frame, we can observe a supply bar in a volume below the average. In the H1 time frame, we can observe a support-cluster around the level of $1,171.00. Besides, the price broke a downward channel (bullish flag). I had placed major Fibonacci expansion to find potential objective points and got Fibonacci expansion 100% at the level of $1,191.00 and Fibonacci expansion 161.8% at the level of $1,247.00.

Daily Fibonacci pivot points :

Resistance levels

R1: 1,176.70

R2: 1,178.75

R3: 1,182.00

Support levels:

S1: 1,170.25

S2: 1,168.25

S3: 1,165.00

Trading recommendations: Be careful when selling gold at this stage and watch for potential buying opportunities on dips. The next resistance level is seen around $1,191.00-$1,247.00.

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

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