Gold analysis for December 31, 2014

Overview
:

Since
our last analysis, gold has been trading sideways around the price of
1,197.00. We are waiting for larger volume and stronger price action.
According to the H4 time frame, we can observe supply in a volume
below the average. My advice is to watch for potential buying
opportunities near the lows. According to the daily time frame, we
can observe demand in a volume above the average, which is a sign
that selling gold at this stage looks risky. I have placed Fibonacci
retracement to find potential resistance level and I got Fibonacci
retracement 61.8% at the price of 1,212.00. 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.

Daily
pivot Fibonacci points:

Resistance
levels:

R1:
1,208.88

R2:
1,216.06

R3:
1,227.67

Support
levels:

S1:
1,185.66

S2:
1,178.48

S3:
1,166.87

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

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