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26.08.2014 03:30 PM
Gold analysis for August 26, 2014

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Overview:

Since our last analysis, gold has been trading upwards. The price tested the level of 1,290.32 in a ultra high volume according to the 1H time frame. We can observe an ultra high volume (buying climax) according to the 1h timeframe, which is a sign that buying looks very risky. Our Fibonacci expansion 61.8% at the price of 1,284.00 is broken. So, we may see potential testing the level of 1,260.00 (Fibonacci expansion 100%). I have placed Fibonacci retracement to find potential resistance levels and I got Fibonacci retracement 38.2% at the price of 1,292.00 and Fibonacci retracement 61.8% at the price of 1,303.00.

Daily pivot Fibonacci points:

Resistance levels:

R1: 1,281.02

R2: 1,282.58

R3: 1,285.10

Support levels:

S1: 1,275.98

S2: 1,274.42

S3: 1,271.90

Trading recommendations: Buying Gold looks risky since the price has broken the support level.

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