Gold : analysis for January 13 , 2016 Market Analysis Review

Overview:

Since our last analysis, gold has been trading downwards. As we expected, the price tested the level of $1,079.65. In the daily time frame, we can observe rejection of Fibonacci retracement 38.2% and successful rejection of SMA 100. Buying at this stage looks risky since the price rejected our strong resistance. The intraday trend is downward. According to 30M time frame, the trend dynamic changed from upward to downward. Price is below all key MAs (50,100,150,200). Besides, the short- and mid-term trend is downward. We placed Fibonacci expansion to find a potential intraday target and got Fibonacci expansion 161.8% at the level of $1,076.00. Be careful when buying gold at this stage and watch for potential selling opportunities. The key support for gold is at the price of $1,046.00. The potential breakout of the level of $1,046.00 will confirm short-term continuation of downward trend.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,095.15

R2: 1,098.50

R3: 1,104.10

Support levels:

S1: 1,084.00

S2: 1,080.65

S3: 1,075.00

Trading recommendations: Watch for potential selling opportunities, buying looks risky.

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

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