20.08.201316:05 Forex Analysis & Reviews: GOLD: analysis for August 20, 2013

Overview:

Since our last analysis, Gold has been trading downwards movement,as like we expected, the price tested the level of 1,352.22 on volume above the average. We are still, likely, to see testing of the weekly FE level of 161.8% at the price of 1,151.00. I saw weak demand bar on low volume, according to the daily chart, which is the sign that we may see down trend continuation. The current situation in (4H) is that we got decreasing in volume on previous upward move and also i placed Fibonacci Expansion level to find potential end of corrective up phase and i got FE 61.8 % at price 1,376.00 and FE 100 % at price 1,440.00 like potential levels where we may see  end of up corrective phase. Since we are in the short-term downtrend in the daily chart, buying Gold looks very risky and I advise you to watch for selling opportunities.

Daily pivot Fibonacci points:

Resistance levels:

R1:  1,379.40

R2: 1,384.54

R3:  1,392.87

Support levels:

S1: 1,362.74

S2: 1,357.60  

S3: 1,349.27  

Trading recommendation: Operating with the metal, be careful with short-term buying and look for selling opportunities. My recommendation for a downward short-term target is at 1,151.00.