GOLD analysis for July 03, 2013

Overview:

Since our last analysis Gold has been trading downward moves, as we expected. We rejected from FE 261.8 % (1H chart ) at price 1,267.00 and tested 1,236.00. I placed Fibonacci expansion levels to find potential end of up corrective phase. Thus, I got FE 261.8% at price 1,269.00 and if that level holds, we may see down continuation. We are still likely to see testing of the weekly FE level 161.8% at price 1,151.00. I saw no demand bar, according to the daily chart (Monday bar) on volume just below the average, which is the sign that there is weak demand on the market. Current situation on (1H) chart is that we test FE 261.8% (1.,267.00) after we saw large buying climax in background.That is the sign that Gold may continue its down movement. Since we are in the short-term downtrend and observe a  buying climax (1H chart) with no demand bar on a daily chart, buying this pair looks very risky. My advice is to watch for selling opportunities after up corrections.

Daily pivot Fibonacci points: 

Resistance levels:

R1 : 1,260.43

R2 : 1,266.97

R3 : 1,277.55

Support levels:

S1 : 1,239.27

S2 : 1,232.73

S3 : 1,222.15

Trading recommendation:

Operating with the metal, be careful with short-term buying and look for selling opportunities. My recommendation for down short-term target is 1,151.00.   

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