FX.co ★ Gold analysis for September 17, 2014

Overview:

Since our last analysis, gold has been trading sideways around the price of 1.236.00. We are facing a very quiet market today, so we are waiting for larger activity and volume on the market. I have placed Fibonacci expansion levels. I got Fibonacci expansion 61.8% at the price of 1,240.00 (currently on the test), Fibonacci expansion 100% at the price of 1,244.00 and Fibonacci expansion 161.8% at the price of 1,252.00. Our major Fibonacci expansion 100% is broken, so we may see potential testing the level of 1,218.00 (Fibonacci expansion 161.8%, almost tested). According to the 4H time frame, we can observe very weak demand in a volume below average, which is a sign that buying still looks risky. Watch for potential selling opportuntiies after retracement.

Daily pivot Fibonacci points:

Resistance levels:

R1: 1,241.57

R2: 1,244.17

R3: 1,248.37

Support levels:

S1: 1,233.37

S2: 1,230.57

S3: 1,226.37

Trading recommendations: Buying looks risky since the price has broke our Fibonacci expansion 100%.