FX.co ★ Gold analysis for January 07, 2016

Overview:

Since our last analysis, gold has been trading upwards. As I expected, the price tested the level of $1,102.62 in a high volume. In the daily time frame, we can observe testing of Fibonacci retracement 38.2% and price action resistance. Buying at this stage looks risky since the price is at the strong resistance. The intraday trend is upward, but the mid-term trend is still downward. I placed Fibonacci retracement to find resistance levels and got Fibonacci retracement 38.2% at the price of $1,102.00 (on the test) and Fibonacci retracement 61.8% at the price of $1,136.00. Intraday selling positions are preferable. The first support level is around the price of $1,088.50.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,094.55

R2: 1,097.65

R3: 1,102.65

Support levels:

S1: 1,084.55

S2: 1,081.45

S3: 1,076.45

Trading recommendations: Watch for potential selling opportunities, buying looks risky.