Gold analysis for December 29 , 2015

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Overview:

Since our last analysis, gold has been trading upwards. The price tested the level of $1,074.36 in an average volume. In the daily time frame, I found a weakly supply bar, which is a sign that selling looks risky. An intraday trend is upward. In the 30M time frame I found another successful re-testing of our channel and a breakout of a bullish flag, which made a good buy point at the level of $1,072.00. I found a potential double bottom formation and a breakout of $1,076.50 is likely to confirm it.The first resistance is seen at the level of $1,076.50 and second is at $1,088.70. The key price action resistance is seen around the level of $1,100.00. The price is above the 200 SMA.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,090.50

R2: 1,096.60

R3: 1,105.90

Support levels:

S1: 1,071.40

S2: 1,065.50

S3: 1,056.00

Trading recommendations: Watch for potential buying opportunites, selling looks risky.

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

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