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05.09.2014 01:30 PM
Gold analysis for September 05, 2014

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Overview:

Since our last analysis, gold has been trading downwrads. As we epxected the price tested the level of 1,257.09 in a volume below average according to the 4H time frame. The price tested our Fibonacci expansion 100% at the level of 1,258.00, so be careful when selling at this stage. If the price breaks the level of 1,251.00 in a high volume, we may see more downward movement and potential testing the level of 1,218.00 (Fibonacci expansion 161.8%). Anyway, Gold may also start a bullish corrective phase, so we must wait and observe price action around our Fibonacci expansion 100%.

Daily pivot Fibonacci points:

Resistance levels:

R1: 1,275.84

R2: 1,280.06

R3: 1,286.90

Support levels:

S1: 1,262.16

S2: 1,257.94

S3: 1,251.10

Trading recommendations: Selling at this stage looks risky since our Fibonacci expansion 100% is on the test.

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