FX.co ★ GOLD analysis for February 24, 2014

Overview:

Since our last analysis, gold has been trading upwards, the price tested the level of 1,334.16 on volume above the average. The Gold is on critical resistance area and the levels of 1,335.00 (FE 100%) and 1,337.00 (FR 61.8%) are very important. We can observe decreasing volume on upper leg, which is potential sign for the bearish reaction. Be careful with buying at this stage, since we may see further bearish reaction. Anyway, to confirm further downward movement, we need to see stronger supply on the market on high volume. Otherwise, if the price breaks the level of 1,337.00 on high volume, we may see more upward movement. My advice is to watch for potential bearish movement.

Daily pivot Fibonacci points:

Resistance levels:

R1: 1,325.45

R2: 1,326.05

R3: 1327.00

Support levels:

S1: 1,323.55

S2: 1,322.95

S3: 1,322.00

Trading recommendation:Trading the metal, be careful with buying since Gold is on critical area and we are also near the high new ground.