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GOLD analysis for July 08, 2013

Posted at July 8, 2013 Categories : Forex Analysis |

Overview:

Since our last analysis, Gold has been trading downwards as we expected. It continued down and tested the level 1,207.87. We rejected from FE 261.8 % (1H chart ) at price 1,267.00 and tested 1,207.87. I placed Fibonacci expansion levels to find the 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 supply bar, according to the daily chart (Friday bar) on volume just below the average, which is the sign that there is supply on the market. The current situation on (1H) is that we got strong supply on the market and lack of demand on previous up move.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 supply bar on a daily chart, buying this pair looks very risky and I advise you to watch for selling opportunities.

Daily pivot Fibonacci points: 

Resistance levels:

R1 : 1,225.54

R2 : 1,228.42

R3 : 1,233.08

Support levels:

S1 : 1,216.22

S2 : 1,213.34

S3 : 1,208.68

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.

 

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