GOLD: Analysis for July 19, 2013
Since our last analysis, Gold has been trading in sideways movement around price 1,286.00, price rejected fifth time from our FE 100% at price 1,295.00. I placed Fibonacci expansion levels to find the potential end of up corrective phase. Thus, I got FE 100% at price 1,295.00 and if that level holds, we may see a down continuation. We are still likely to see testing of the weekly FE level 161.8% at price 1,151.00. I saw weak demand bar on volume just above the average, according to the daily chart which is the sign that we may see supply coming on the market. The current situation on (4H) is that we got fifth test of level 1,295.00. That is the sign that Gold may continue its down movement. If the price does not reject from our FE 100% (1,295.00), we may see testing of previous SR zone (blue shape) at price 1,320.00 and then continuation with down movement. Since we are in the short-term downtrend and observe few tests of FE 100% (4H chart) with weak demand on the daily chart, buying Gold looks very risky and I advise you to watch for selling opportunities.
Daily pivot Fibonacci points:
R2 : 1,290.15
R3 : 1,295.35
S1 : 1,276.55
S2 : 1,273.35
S3 : 1,268.15
Trading recommendation: Operating with metal, be careful with short-term buying and look for selling opportunities. My recommendation for down short-term target is 1,151.00.
The material has been provided by InstaForex Company – www.instaforex.com