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Gold analysis for January 22, 2016

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Overview:

Since our last analysis, gold has been trading sideways around the level of $1,098.00. In the daily time frame, we can observe a weak demand bar with a weak close. Also, the price rejected our 100 SMA at the level of $1,107.00. Buying at this stage looks risky since the price is at the resistance level. An intraday trend is upward, but short-term and mid-term trends are still bearish. I found an upward trend line in the area around $1.094.00. If the price breaks the level of $1,094.00, we may see further downward movement. Downward support is found at the levels of $1,092.00, and $1,085.00. The resistance level is set in the area of $1,115.00.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,103.15

R2: 1,105.40

R3: 1,109.00

Support levels:

S1: 1,095.00

S2: 1,093.65

S3: 1,090.00

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

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