FX.co ★ Gold analysis for February 06, 2015

Overview :

Since our last analysis gold has been trading sideways around the price of 1,264.00. We are still waiting for larger activity on the market. We are facing low volatility today on the market. According to the H4 time frame, we got very high effort from sellers with very weak result in the background, which is a sign that selling around the price of 1,255.00 looks risky. Our submajor Fibonacci retracement 38.2% at the price of 1,254.00 has been held successfully again. Anyway, if the price breaks the level of 1,254.00 in a strong volume, we may see a possible testing of the level of 1,240.00 (Fibonacci expansion 161.8%). According to the daily time frame, we have weak supply on the market. Resistance level is around the price of 1,307.00 (swing high like resistance). My advice is to watch for potential buying opportunities on the lows (buy on the dips).

Daily Fibonacci pivot points :

Resistance levels :

R1: 1,271.54

R2: 1,275.90

R3: 1,282.97

Support levels :

S1: 1,257.40

S2: 1,253.04

S3: 1,245.97

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