Gold analysis for August 14, 2014

Overview:

Since our last analysis, gold has been trading sideways, around the price of 1,315.00. We are still waiting for larger movement and larger volume (activity). According to the Daily time frame, we can observe another weak demand candle and successful rejection from our Fibonacci retracement 61.8%, which is a sign that buying looks risky. Anyway, if the price breaks the level of 1,321.00 in a higher volume, we may see the level of 1,343.00 is being tested. My advice is to watch for selling opportunities after retracement. I have placed Fibonacci expansion from most recent ABC swings and I got Fibonacci expansion 100% at the price of 1,318.00.

Daily pivot Fibonacci points:

Resistance levels:

R1: 1,316.27

R2: 1,318.73

R3: 1,322.70

Support levels:

S1: 1,308.33

S2: 1,305.87

S3: 1,307.91

Trading recommendations: Buying Gold looks risky since we got successful rejection from our Fibonacci retracement 61.8%.