Gold analysis for December 18, 2014

Overview
:

Since
our last analysis, gold has been trading downward. The price tested
and rejected from the level of 1,183.57. Our corrective Fibonacci
expansion 161.8% at the price of 1.195.00 has been held successfully,
which caused price to start with an upward movement. I placed Fibonacci
retracement to find potential resistance level and got Fibonacci
retracement 61.8% at the price of 1.217.00. According to the 1H time
frame, we can observe selling climax and after it an absorption
volume, which makes gold very risky for selling. So, selling gold at
this stage looks risky, watch for potential buying oppoprtunities.
According to the daily time frame, we got weak supply in a volume
below the average.

Daily
pivot Fibonacci points:

Resistance
levels:

R1:
1,201.26

R2:
1,206.24

R3:
1,214.30

Support
levels:

S1:
1,185.14

S2:
1,180.16

S3:
1,172.10

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

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