06.10.201414:12 Forex Analysis & Reviews: Gold analysis for October 06, 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. As we expected, the price tested the level of 1,182.92 (swing low like support). Anyway, we can observe rejection from the level of 1,182.00 and gold is now in bullish corrective phase . According to the daily chart, we can observe healthy bearish price action, which is a sign that buying still looks very risky. I have placed Fibonacci retracement from the most recenet swing points and I got Fibonacci retracement 38.2% at the price of 1,197.00. According to previous price action, we got resistance level at the price of 1,204.00 (swing low like resistance).

Daily pivot Fibonacci points:

Resistance levels:

R1: 1,190.58

R2: 1,.192.56

R3: 1,195.77

Support levels

S1: 1,184.16

S2: 1,182.18

S3: 1,178.97

Trading recommendations: Buying still looks risky since we got strong selling pressure on the market and low reaction from buyers

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.