FX.co ★ Gold : analysis for October 20, 2014

Overview:

Since our last analysis, gold has been trading sideways around the price of 1,245.00. We are still waiting for larger volume and stronger price action. Our submajor Fibonacci retracement 38.2% at the price of 1,245.00 is again on the testб so be careful when buying gold. If the price breaks the level of 1,245.00 in a high volume, we may see potential testing the level of 1,262.00 (major Fibonacci retracement 38.2%). According to the 4H time frame, we can observe sideways movement in aт average volume. . Be careful when buying and watch for potential selling opportunities. Any larger supply may confirm futher bearish movement.

Daily pivot Fibonacci points:

Resistance levels:

R1: 1,239.08

R2: 1,240.42

R3: 1,242.60

Support levels

S1: 1,234.72

S2: 1,233.38

S3: 1,231.20

Trading recommendations: Buying still looks risky since gold is near resistance level.