FX.co ★ Gold analysis for August 29, 2014

Overview:

Since our last analysis, gold has been trading downwards. The price tested the level of 1,283.25 in a volume above average. Our Fibonacci expansion 61.8% at the price of 1,284.00 is broken. So, we may see potential testing the level of 1,260.00 (Fibonacci expansion 100%). I have placed Fibonacci retracement to find potential resistance levels and I got Fibonacci retracement 38.2% at the price of 1,292.00 and Fibonacci retracement 61.8% at the price of 1,303.00. According to the 1H time frame, we can observe absorption volume in the background, which is a sign that buying looks risky. Watch for potentaial selling opportunities.

Daily pivot Fibonacci points:

Resistance levels:

R1: 1,295.91

R2: 1,299.35

R3:1,304.93

Support levels:

S1: 1,284.75

S2: 1,281.31

S3: 1,275.73

Trading recommendations: Buying Gold looks risky since the price has broken the support level.