Gold analysis for February 21, 2014

Overview:

Since our last analysis, gold has been trading upwards, the
price tested the level of 1,324.76 on lower volume. Our previous analysis is still valid.
The price stopped at FR 61.8% (1,322.00). We can observe low volume demand
around the price of 1,323.00, which is the sign that buying at this stage is
risky. Be careful with buying at this stage since we may see further downward
movement. First down station may be an area around the price of 1,307.00 (swing
low). Anyway, to confirm further downward movement, we neeed to see stronger
supply on the market on high volume. Otherwise, if the price breaks the level
of 1,325.00 on high volume, we may see possible test of the level of 1,331.00. My
advice is to watch for potential bearish movement.

Daily pivot Fibonacci points:

Resistance levels:

R1: 1,324.55

R2: 1,328.65

R3: 1,335.30

Support levels:

S1: 1,311.25

S2: 1,307.15

S3: 1,300.50

Trading recommendation:
Trading the metal, be careful with buying since we have weak demand on the
market and Gold is near the high new ground.

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