07.05.201414:04 Forex Analysis & Reviews: GOLD analysis for May 07, 2014

Long-term review

This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

Overview

Since our last analysis, gold has been trading sideways, around the price of 1,310.00, we are still waiting for a larger movement and larger volume. Our previous analysis is still active due to low activity on the market. 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. Anyway, we found support level at the price of 1,305.00 (previous swing low), and if the price breaks the level of 1,305.00 on higher volume, we may see further bearish movement.. Any larger supply and reaction from our resistance zone may confrim further bearish phase.

Daily pivot Fibonacci points:

Resistance levels:

R1: 1,312.47

R2: 1,314.73

R3: 1,318.40

Support levels:

S1: 1,305.13

S2: 1,302.87

S3: 1,299.20

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.

Back to the list

Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.