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Gold analysis for January 26 , 2016

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Overview:

Since our last analysis, gold has been trading upwards. As I expected, the price tested the level of $1,117.42. In the daily time frame, we can observe a demand bar in an average, which is a sign that sellers do not have power and that we may expect further upward movements to take place. An intraday trend is upward. The price broke our resistance level at $1.111.50, which is now acting as good support. This area looks like a good place to open buying positions. The take-profit zone is set at the level of $1,134.00 (Fibonacci retracement 61.8%).

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,109.60

R2: 1,112.00

R3: 1,115.85

Support levels:

S1: 1,102.00

S2: 1,099.60

S3: 1,095.80

Trading recommendations: Watch for potential buying opportunities on dips.

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