FX.co ★ GOLD: analysis for November 01, 2013

Overview:

Since our last analysis, Gold has been trading downwards,as like we expected, the price tested the level of 1,315.00 on high volume, and we ended the small bullish corrective phase as we expected. In the daily chart, we can observe good supply on the volume above the average, which is a sign that Gold may start bearish continuation. We are still likely to see it testing the weekly FE level of 161.8% (Weekly third target) at the price of 1,151.00. The current situation in (4H) is that we have got buying climax, decreasing volume on upward legs and the broken channel, which is the sign that Gold may continue the downward movement. Since we are in the short-term downtrend in the daily chart, buying Gold looks very risky and I advise you to watch for selling opportunities after corrections.

Daily pivot Fibonacci points:

Resistance levels:

R1: 1,336.72

R2: 1,342.18

R3: 1,351.00

Support levels:

S1: 1,319.08

S2: 1,313.62

S3: 1,304.80

Trading recommendation: Operating with the metal, be careful with the short-term buying and look for selling opportunities. My recommendation for a downward short-term target is at 1,151.00