GOLD analysis for July 05, 2013

[Mr. Job]

الصحف المصرية والعربية

Overview:

Since our last analysis, Gold has been trading downwards as we expected. It continued down and tested the level 1,233.00. We rejected from FE 261.8 % (1H chart ) at price 1,267.00 and tested 1,233.00. I placed Fibonacci expansion levels to find the potential end of up corrective phase. Thus, I got FE 261.8% at price 1,269.00 and if that level holds, we may see down continuation. We are still likely to see testing of the weekly FE level 161.8% at price 1,151.00. I saw no demand bar, according to the daily chart (Thursday bar) on very low volume, which is the sign that there is no demand on the market. The current situation on (1H) chart is that we tested FE 261.8% (1.,267.00) after we saw large buying climax in the background and from that point we started down continuation.That is the sign that Gold may continue its down movement. Since we are in the short-term downtrend and observe a buying climax (1H chart) with no demand bar on a daily chart, buying this pair looks very risky and I advice you to watch for selling opportunities.

Daily pivot Fibonacci points:

Resistance levels:

R1 : 1,253.69

R2 : 1,256.45

R3 : 1,260.92

Support levels:

S1 : 1,244.75

S2 : 1,241.99

S3 : 1,237.52

Trading recommendation: Operating with the ****l, 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

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