FX.co ★ Gold : analysis for October 24, 2014

Overview:

Since our last analysis, gold has been trading sideways downwards. As we expected, the price tested the level of 1,226.12. Our submajor Fibonacci retracement 38.2% at the price of 1,227.00 is on the test. According to the daily time frame, we can observe supply in a volume below the average. Gold is now in a bearish corrective phase so I if the price breaks the level of 1,227.00 in a high volume, we may see testing of Fibonacci retracement 61.8% at the price of 1,210.00. Buying gold at this stage looks risky.

Daily pivot Fibonacci points:

Resistance levels:

R1: 1,240.54

R2: 1,244.92

R3: 1,252.03

Support levels

S1: 1,226.32

S2: 1,221.94

S3: 1,214.83

Trading recommendations: Watch for potential intraday selling opportunities