FX.co ★ Gold analysis for October 02, 2014

Overview:

Since our last analysis, gold has been trading downwards. As we expected, the price rejected from our Fibonacci retracement 61.8% (1,223.00) and tested the level of 1,210.22. If the price breaks the level of 1,206.00 in a high volume and healthy price action, we may see potential testing the level of 1,194.00 (Fibonacci expansion 100%). According to the daily chart, we can observe very weak demand, which is a sign that buying still looks risky. Watch for potential selling opportunities after retracement.

Daily pivot Fibonacci points:

Resistance levels:

R1: 1,219.23

R2: 1,222.77

R3: 1,228.50

Support levels

S1: 1,207.77

S2: 1,204.23

S3: 1,198.50

Trading recommendations: Buying still looks risky since we got strong rejection from our Fibonacci retracement 61.8% in the background