Analysis of gold for January 02, 2015

Overview
:

Since
our last analysis, gold has been trading downward. The price tested
the level of 1,181.06. According to the 14 time frame, we can observe
supply in an ultra high volume (selling climax), which is a sign that
selling gold at this stage looks risky. My advice is to watch for
potential buying opportunities near the lows. According to the daily
time frame, we have support level at the price of 1,172.00. Our
Fibonacci retracement 61.8% at the price of 1,212.00 has been held
successful, which caused price to start with downward movement. If
the price breaks the level of 1,212.00 in a high volume, we may see a
potential testing of the level of 1,237.00. Any larger demand in a
high volume and strong price action may confirm further bullish
phase.

Daily
pivot Fibonacci points:

Resistance
levels:

R1:
1,187.43

R2:
1,188.23

R3:
1,189.53

Support
levels:

S1:
1,184.83

S2:
1,184.03

S3:
1,182.73

Trading
recommendations: Watch for potential buying opportunities after
retracement (buy on the lows).

The material has been provided by InstaForex Company – www.instaforex.com