27.05.201413:22 Forex Analysis & Reviews: GOLD analysis for May 27, 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 downwards, the price tested the level of 1,281.46 on ultra high volume (selling climax) according to the 1H timeframe. According to the daily timeframe, we have got weak demand on low volume which caused price to start downward movement. Anyway we have got strong bullish reactions in the background from our support at 1,277.00 on higher volume, which is a sign that short-term selling looks very risky. According to the 1h timeframe, we can observe selling climax near the low and just after that no selling pressure on low volume, which is a sign that we may see possible bullish reaction. We can conclude that the price of 1,305.00 (swing low) is strong resistance and the level of 1,277.00-1,269.00 is strong support. Be careful with selling since the price is near support.

Daily pivot Fibonacci points:

Resistance levels:

R1: 1,293.92

R2: 1,294.62

R3: 1,295.77

Support levels:

S1: 1,291.62

S2: 1,290.92

S3: 1,289.77

Trading recommendation: Trading the metal, be careful with short-term selling since the price is near support.

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.