GOLD: analysis for January 09, 2014

Overview:

Since our last analysis, gold has been trading upward
movement, as like we expected, the price tested level of 1,226.94 on lower
volume (below the average). The price rejected again from our SR zone at price
1,219.00 . We can also observe selling climax at 1,218.00, which is a sign that
selling at this stage looks risky. I placed Fibonacci levels to find potential
upper station and I got FE 61.8% at 1,256.00 and FR38.2% at 1,279.00-1,295.00.
In case the price breaks the area of 1,216.00, we may see testing of FR 61.8% at
price 1,207.50. Do not forget, gold is in bearish trend and we are now in
bullish corrective phase. Selling gold at this stage looks risky since gold is
in progress of bullish corrective phase.

Daily pivot Fibonacci points:

Resistance levels:

R1: 1,231.86

R2: 1,238.23

R3: 1,245.26

Support levels:

S1: 1,218.46

S2: 1,211.43

S3: 1,205.06

Trading recommendation: Trading the metal, be careful
with selling gold and try to catch bullish corrective phase.

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