FX.co ★ Gold : analysis for September 16, 2014

Overview:

Since our last analysis, gold has been trading upwards. The price tested the level of 1,241.88 in a volume below average. Gold started a bullish corrective phase. I have place Fibonacci expansion levels. I got Fibonacci expansion 61.8% at the price of 1,240.00 (currently on the test), Fibonacci expansion 100% at the price of 1,244.00 and Fibonacci expansion 161.8% at the price of 1,252.00. Our major Fibonacci expansion 100% is broken, so we may see potential testing the level of 1,218.00 (Fibonacci expansion 161.8%, almost tested). According to the 4H time frame, we can observe very weak demand in a volume below average, which is a sign that buying still looks risky. Watch for potential selling opportuntiies after retracement.

Daily pivot Fibonacci points:

Resistance levels:

R1: 1,238.46

R2: 1,241.50

R3: 1,246.43

Support levels:

S1: 1,228.60

S2: 1,225.56

S3: 1,220.63

Trading recommendations: Buying looks risky since the price has broke our Fibonacci expansion 100%.