GOLD: analysis for December 26, 2013

Overview:

Since our last analysis,
Gold has been trading upwards, as we expected, the price tested the level
of 1,205.00 on volume below the  average.
According to the 1H chart, Gold is in bullish corrective phase, so we placed
Fibonacci expansion to find the levels for potential end of the bullish corrective
phase. We got FE 61.8 % at 1,205.22, FE 100 % at 1,213.15, and FE 161.8 % at the price of 1,225.97. We can also see lack of demand around the area of 1,205.00 which is
a good sign that we may see bearish continuation from 1,205.00. Anyway, if the price breaks the area of 1,206.00 on high volume, we may see the testing of FE 100
% at 1,213.15, before we start with bearish continuation. Don’t forget,
Gold is in bearish trend so buying looks very risky. Watch for selling
opportunities after the bullish corrective phase ends.

Daily pivot Fibonacci points:

Resistance levels:

R1:  1,205.19

R2:  1,207.41

R3:  1,211.00

Support levels:

S1:  1,198.01

S2:  1,195.79

S3:  1,192.20

Trading recommendation: Trading the metal, be careful with
short-term buying and look for selling opportunities after the bullish
corrective phase ends.

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