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Gold: analysis for December 22 , 2015

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Overview:

Since our last analysis, gold has been trading sideways around the price of $1,078.00. In the daily time frame, I found a strong demand bar, which is a sign that selling looks risky. The trend is downward in the mid- and long terms. In the 4H-time frame, we can observe successful breakout of strong trendline and broken 200 SMA which gave us a sign that we may see further upside. The first resistance is seen at the level of $1,088.70. Key price action resistance is around the price of $1,100.00.

Daily Fibonacci pivot points:

Resistance levels

R1: 1,080.50

R2: 1,083.20

R3: 1,087.50

Support levels:

S1: 1,071.90

S2: 1,069.22

S3: 1,064.90

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

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