FX.co ★ Gold analysis for January 27, 2014

Overview :

Since our last analysis gold has been trading upwards. As we expected, the price has tested the level of 1,288.33 in a very high volume. According to the daily time frame, we have weak supply in a volume below the average, what caused price to start with an upward movement. According to the H1 time frame, we can observe an end of bearish corrective phase (abcd). Our Fibonacci expansion 161.8% at the price of 1,275.00 nas been held successfully. Be careful when selling gold and watch for potential buying opportunities on the lows.

Daily Fibonacci pivot points :

Resistance levels :

R1: 1,294.75

R2: 1,300.31

R3: 1,309.33

Support levels :

S1: 1,276.71

S2: 1,271.15

S3: 1,262.13

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