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Gold : analysis for August 04 , 2015

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Overview:

Since our last analysis, gold has been trading upwards. The price tested the level of $1,094.71. According to the daily time frame, we can observe weak supply and small real body. We can observe a volume spike (buying climax) followed by supply (sign of weakness) in the background. Fibonacci retracement 61.8% at the level of $1,094.00 is on the test. According to the 30M time frame, we can observe the buying climax (potential hidden selling).

Daily Fibonacci pivot points:

Resistance levels

R1: 1,095.00

R2: 1,099.00

R3: 1,104.00

Support levels:

S1: 1,085.50

S2: 1,082.30

S3: 1,078.00

Trading recommendations: Be careful when buying gold at this stage since we have a fake buying climax in the background.

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