22.09.201415:01 Forex Analysis & Reviews: Gold : analysis for September 22, 2014

Long-term review

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Overview:

Since our last analysis, gold has been trading downwards. As we expected, the price tested the level of 1,208.00 in a volume below average. According to the 4H time frame, we can observe weak demand in a volume below average, which is a sign that buying still looks risky. If the price breaks the level of 1,218.00 in a higher volume, we may see potential testing the level of Fibonacci expansion 100% at the price of 1,194.00. Anyway, if the price starts with upward movement, there is a Fibonacci retracement 38.2% from the most recent downward leg at the price of 1,220.00.

Daily pivot Fibonacci points:

Resistance levels:

R1: 1,216.98

R2: 1,217.36

R3: 1,217.97

Support levels

S1: 1,215.76

S2: 1,215.15

S3: 1,214.77

Trading recommendations: Buying still looks risky since we can't see any larger reaction from buyers.

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