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Gold analysis for January 18, 2017

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Recently, gold has been trading sideways at the price of $1,212.14, heading upwards. On the 4H time frame, I found an upward channel, which is holding successfully and also there is successful rejection from 25SMA displaced 5, which provides good support. The trend is bullish and you should look for buying opportunities. I placed Fibonacci expansion to find potential upward targets. I got Fibonacci expansion 100% at the price of $1,221.80 and Fibonacci expansion 161.8% at the price of $1,233.00.

Resistance levels:

R1: 1,214.40

R2: 1,217.65

R3: 1,222.95

Support levels:

S1: 1,203.85

S2: 1,200.60

S3: 1,195.30

Trading recommendations for today: Watch for buying opportunities on dips.

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