FX.co ★ Gold analysis for January 21, 2014

Overview :

Since our last analysis gold has been trading upwards. As we expected, the price has tested the level of 1,304.50 in a high volume. Our Fibonacci retracement 61.8% at the price of 1,292.00 got broken. So, we may expect testing the level of 1,344.00 (swing high like resistance). According to the H4 time frame, we can observe weak supply and demand in an average volume. Be careful when selling gold and watch for potential buying opportunities on the lows.

Daily pivot Fibonacci points:

R1: 1,297.42

R2: 1,303.34

R3: 1,312.93

Support levels :

S1: 1,278.24

S2: 1,272.32

S3: 1,263.73

Trading recommendations: Watch for potential buying opportunities after retracement (buy on the dips).