Gold : analysis for May 29, 2015

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Overview:

Gold has been trading sideways around the level of $1,189.00. The short-term trend is neutral. I found strong trading range between the levels of $1,192.00 and $1,183.00. According to the daily time frame, we can observe a very high volume and weak price action. Also, the price is testing our demand trendline (support). Our Fibonacci retracement 50 % at the level of $1,187.00 was successfully held. If the price breaks the level of $1,183.00, the support levels will be at $1,178.00 and $1,167.00. Anyway, I found a strong shake-out in an ultra-high volume (false breakout) of our support at the level of $1,183.00, which is a sign that selling at this stage looks risky. I am still waiting for a clear breakout, but my selling looks more risky because of strong shake-out.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,192.00

R2: 1,195.00

R3: 1,200.00

Support levels:

S1: 1,182.45

S2: 1,180.00

S3: 1,174.50

Trading
recommendations: The price is in a trading range (sideways). Wait for a clear
breakout in a high volume to confirm further direction.

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

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