GOLD: analysis for January 15, 2014

Overview:

Since our last analysis, gold has been trading downward, the
price tested level of 1,235.33 on volume above the average.We can alsoВ  observe that supply has entereted the market
at 1,253.00 (selling climax) which caused price to start bearish movement.If
the price breaks the level of 1,256.00 (FE 61.8) on high volume, we may see
testing next upper stations at 1,279.00 and 1,295.00.Do not forget, gold is in
bearish trend and we are now in bullish corrective phase.We may see testing
levels around 1,232.00-1,227..00, before another bullish movement. Selling gold
at this stage looks risky since gold is in progress of bullish corrective phase
if the price breaks 1,256.00 . Watch for buying opportunities above the level
of 1,256.00.

Daily pivot Fibonacci points:

Resistance levels:

R1: 1,251.43

R2: 1,254.61

R3: 1,259.77

Support levels:

S1: 1,241.11

S2: 1,237.93

S3: 1,232.77

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