FX.co ★ Gold analysis for October 02 , 2015

Overview:

Since our last analysis, gold has been trading downwards. As we expected, the price tested the level of $1,105.93. The intraday trend is downward, so watch only for selling opportunities after retracement. In the daily time frame, we can observe a supply bar in an average volume. In the M15 time frame, we can observe a peak volume at the level of $1,111.75 (the today point of control). Besides,there is a lack of demand at the level of $1,111.75 (no-demand bar) and we can observe that activity caused the price to continue with downward movement. According to the daily price action, support level is seen at $1,102.00-$1,198.48.

Daily Fibonacci pivot points :

Resistance levels

R1: 1,117.70

R2: 1,119.00

R3: 1,121.20

Support levels:

S1: 1,113.35

S2: 1,112.00

S3: 1,110.00

Trading recommendations: Be careful when buying gold at this stage and watch for potential selling opportunities after retracement.