06.05.201414:46 Forex Analysis & Reviews: GOLD analysis for May 06, 2014

Long-term review

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Overview

Since our last analysis, gold has been trading sideways, around the price of 1,308.00, we are waiting for a larger movement and larger volume. As we already posted in the previous analysis, we got our major support level at the price of 1,277.00 and that level held successfully. As you can see in the graph, our major Fibonacci retracement 38.2% (1,315.55) is on the test, and if the price breaks the level of 1,315.00 on higher volume, we may see testing the levels of 1,330.00-1,344.00 (Fibonacci ratios) before any larger supply. According to the H1 timeframe, we can observe decreasing volume on upward leg, which is a sign that buying at this stage looks risky. Any larger supply and reaction from our resistance zone may confrim further bearish phase.

Daily pivot Fibonacci points:

Resistance levels:

R1: 1,314.94

]R2: 1,318.56

R3: 1,324.40

Support levels:

S1: 1,303.26

S2: 1,299.64

S3: 1,293.80

Trading recommendation: Trading the metal, be careful with short-term buying at this stage since price is testing Fibonacci retracement. Watch for selling opportunities after retracement.

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