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Gold analysis for August 06 , 2015

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Overview:

Since our last analysis, gold has been trading sideways around the price of $1,085.00. It is another low-volatility day for gold. According to the daily time frame, we can observe a weak small real body. I found a strong trading range between the prices of $1,077.00 (support) and $1,108.00. Selling gold around our support looks very risky and my advice is to watch for a potential breakout of the trading range to confirm further direction. According to the H1 time frame, we can observe weak supply, which is a sign that buyers may start buy at this stage. The trend is still neutral.

Daily Fibonacci pivot points:

Resistance levels

R1: 1,090.00

R2: 1,092.00

R3: 1,096.00

Support levels:

S1: 1,082.72

S2: 1,080.45

S3: 1,076.00

Trading recommendations: Be careful when selling gold at this stage since the price is near our strong support. Watch for breakout of our trading range to confirm further direction. Buyers are in control today.

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