Gold analysis for January 12, 2017

Source: Forex Analysis

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Recently, gold has been trading upwards. The price tested the level of $1,206.74 in an average volume. According to the 30M time frame, I found divergence in the Moving Average Oscilator. The price made a higher high and the oscilator made a lower high. My advice is to watch for potential selling opportunities. Anyway, the good selling opportunity will be only if the price breaks the upward trendline. Downward target is set at the price of $1,187.90 (point of control.) The intraday trend is still bullish. As long the price is trading above the upward trendline, watch for buying opportuniites. Targets are set at the price of $1,210.00 (Fibonacci expansion 100%) and $1,233.00 (Fibonacci expansion 161.8%).

Resistance levels:

R1: 1,177.55

R2: 1,202.40

R3: 1,210.00

Support levels:

S1: 1,181.90

S2: 1,177.00

S3: 1,169.25

Trading recommendations for today: Divergence on oscilator in creation. Watch for a potential breakout of the upward trendline for selling opportunity.

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