Gold analysis for February 03, 2016 Market Analysis Review

Overview:

Since our last analysis, gold has been trading sideways at the level of $1,127.00. An intraday short-term trend is upward. In the daily time frame, I found a neutral bar but the volume is still above the average. The demand still presents in the market. So, selling looks risky. We can see a test at the 200 SMA. Also, the pair is trading well above all key MA`s (SMA 50,100,150,200) in the H4 time frame. The first take-profit level is reached at $1,134.00 (Fibonacci retracement 61.8%, daily SMA 200). If the price breaks the level of $1,134.00, we may expect potential testing of $1,182.00). In the M30, I found a trading range between the support level of $1,120.00 and the resistance of $1,130.60. Since Gold is in the uptrend according to the lower frame, watch for the potential upward breakout to confirm the further upward continuation.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,130.60

R2: 1,132.60

R3: 1,135.80

Support levels:

S1: 1,124.00

S2: 1,122.20

S3: 1,119.00

Trading recommendations:Trading recommendations: watch for potential breakout of the trading range to confirm further direction.

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