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Gold analysis for June 18, 2015

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Overview:

Gold has been trading upwards. The price tested the level of $1,203.41. In the daily time frame, we can observe a strong bullish bar in a volume below the average. We got absorption volume near the price of $1,175.009 and that reaction caused the price to start moving upwards. Since our strong support around the price of $1,175.00 held successfully, selling gold looks risky. Major resistance is at the price of $1,225.00. The short-term trend has changed from neutral to bullish.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,185.50

R2: 1,189.00

R3: 1,194.00

Support levels:

S1: 1,174.00

S2: 1,170.20

S3: 1,165.00

Trading recommendations: Absorption volume in the background. Selling gold looks risky. Watch for potential buying opportunities on the dips.

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