FX.co ★ Gold analysis for May 22, 2015

Overview:

Gold has been trading sideways around the level of $1,205.00. The price supports cluster around the level of $1,203.00. We can observe supply in a high volume with strong price action in the daily time frame. The short-term trend is neutral. The daily resistance at the level of $1,224.00 held successfully. If the price breaks the level of $1,224.00 in a high volume and strong price action takes place, we may see possible testing at the level of $1,250.00 (Fibonacci expansion 100%). Anyway, I found strong trading range between the price of $1,214.00 and $1,201.00. I am waiting for a clear breakout with high volume to confirm direction.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,210.00

R2: 1,213.00

R3: 1,217.00

Support levels:

S1: 1,201.35

S2: 1,198.60

S3: 1,194.15

Trading recommendations: Be careful when buying gold below the price of $1,225.00.