FX.co ★ Gold analysis for January 08, 2016

Overview:

Since our last analysis, gold has been trading upwards. The price tested the level of $1,112.58 in a high volume. In the daily time frame, we can observe testing of Fibonacci retracement 38.2% and price action resistance and testing of SMA 100. Buying at this stage looks risky since the price is at the strong resistance. The intraday trend is upward, but the mid-term trend is still downward. I placed Fibonacci retracement to find resistance levels and got Fibonacci retracement 38.2% at the price of $1,102.00 (on the test) and Fibonacci retracement 61.8% at the price of $1,136.00. Intraday selling positions are preferable. The first support level is around the price of $1,088.50.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,110.20

R2: 1,114.40

R3: 1,121.20

Support levels:

S1: 1,096.60

S2: 1,092.40

S3: 1,085.60

Trading recommendations: Watch for potential selling opportunities, buying looks risky.