04.01.201615:53 Forex Analysis & Reviews: Gold analysis for January 04, 2016

Overview:

Since our last analysis, gold has been trading upwards. The price tested the level of $1,078.30 in an average volume. In the daily time frame, I found potential testing of 50 SMA. Be careful when buying gold at this stage. An intraday trend is neutral. Short- and mid-term trends are downward. In the H4 time frame, the price is well above SMA 50 and 100, but moving averages are flat. According to the M30 time frame, I found a volume spike and very wide spread of the bar (buying looks very risky). I found symmetrical triangle (trend continuation pattern) and the price is trying to break upside, but in my opinion, we may see a potential fake breakout to the upside so be careful when buying. I expect testing of $1,050.00. I would like to see a breakout in a high volume at $1,046.00 confirming the trend-continuation pattern.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,064.60

R2: 1,065.65

R3: 1,067.30

Support levels:

S1: 1,061.20

S2: 1,060.20

S3: 1,058.50

Trading recommendations: Watch for potential selling opportunities, buying looks risky.