12.10.201512:14 Forex Analysis & Reviews: Gold : analysis for October 12 , 2015

Overview:

Since our last analysis, gold has been trading upwards. As we expected, the price tested the level of $1,166.49. An intraday trend is upward. In the daily time frame, I found a trading range between $1,170.00 (resitance) and $1,098.50 (support). In the H1 time frame, we can observe weak supply around the level of $1,163.00. I am waiting for a clear breakout of the trading range in a high volume to confirm further short and mid-term direction. Anyway, intraday buying opportunities are preferable. The level of $1,170.00 is the first strong resistance. We may expect potential downward correction, so watch for potential buying opportunites after correction (buy on the dips). First support level is seen at $1,159.50.

Daily Fibonacci pivot points :

Resistance levels

R1: 1,156.20

R2: 1,156.70

R3: 1,157.45

Support levels:

S1: 1,154.70

S2: 1,154.20

S3: 1,155.45

Trading recommendations: Be careful when selling gold at this stage and watch for potential buying opportunities on the dips. Strong resistance is seen around the level of $1,170.00.