FX.co ★ Gold analysis for July 22, 2014

Overview:

Since our last analysis, gold has been trading downwards. The price tested the level of 1,304.39 in a volume below average according to the daily timeframe. According to the daily timeframe, we can observe demand in a volume below average as well as rejecting from our Fibonacci retracement 61.8% at the price of 1,324.70. We can observe a strong buying climax bar in the background according to the 4H timframe, which caused the price to start downward movement. I have placed Fibonacci expansion to find potential resistance. and I got Fibonacci expansion 61.8% at the price of 1,323.00 and Fibonacci expansion 100% at the price of 1,336.00. Support level is still around the price of 1,291.00.

Daily pivot Fibonacci points:

Resistance levels:

R1: 1,317.84

R2: 1,320.46

R3: 1,324.70

Support levels:

S1: 1,309.36

S2: 1,306.74

S3: 1,302.50

Trading recommendations: Be careful with buying and watch for potential selling opportunities after retracement.