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Gold analysis for February 24, 2016

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Overview:

Since our last analysis, gold has been trading upwards. The price tested the level of $1,239.06. Our support at $1,196.00 successfully held again. In the daily time frame, I found a demand bar in an average volume. At this stage selling looks risky. According to the H4 time frame, I found a failed attempt from sellers to absorb buying climax in the background. Our key MA`s are heading upwards (upward trend). The key resistance level is seen at $1,262.70. If the price breaks the level of $1,262.70 in a high volume, we may see potential testing of $1,307.00.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,233.80

R2: 1,240.00

R3: 1,249.00

Support levels:

S1: 1,214.00

S2: 1,208.00

S3: 1,198.50

Trading recommendations: be careful when selling gold and watch for potential buying opportunities on dips.

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