FX.co ★ Gold : analysis for November 21, 2014

Overview :

Since our last analysis, gold has been trading upwards. As we expected, the price tested the level of 1,207.67 in a average volume. According to the daily time frame, we can observe demand in a volume above average, which is a sign that selling looks risky. We can observe rejection from our Fibonacci retracement 38.2% at the price of 1,176.00, which caused price to continue with bullish pressure. Our Fibonacci retracement 61.8% at the price of 1,207.00 is on the test, so be careful when buying gold at this stage. Anyway, my advice is to watch for potential buying opportunities on the lows (buy on the low).

Daily pivot Fibonacci points:

Resistance levels:

R1: 1,195.69

R2: 1,200.51

R3: 1,208.30

Support levels:

S1: 1,180.11

S2: 1,175.95

S3: 1,167.50

Trading recommendations: Watch for potential buying opportunities after retracement (buy on the lows).