Free Forex And Gold Signals

Good day and happy new year to all my fellow traders!

We are going to start this year analysis with a yearly fibonacci retracement that were drawn from Januari 2011 till December 2011.

Gold Daily

Technically;

1. After surging to the highest level since the day the earth were created, gold price falls freely to the levels many would have not imagine before. It was the biggest drop in gold price since 2008.
2. For comparison, in 2008, gold went to a high of $1032.60 on the 17/03/08 before plunged to the low of $681.43 on 24/10/08. A significant drop of $351.17 for a period of no less than 7 month. Sub prime crisis was that culprit then, and everybody seems to panic beyond any reasons whatsoever. This time around, Euro zone crisis was and still the cancer. A high of $1920.80 were recorded in 6/9/11 before a drop to the low of $1522.55 on the 29/12/11 were spotted. A drop of $398.25, more than $47.08 from the previous biggest drop in history. And this happened only in 3 months!
3. Using Fibonacci retracement, we can clearly see how the gold price move and significantly respect the fibo retracements levels. (see above chart)
4. Fibo level 61.8% or $1543.23 seems to be the last man standing. Breaking that level would put more pressure on the next psycho level at $1500. A break from that level would see more damages as it approach another support at $1478, and $1425.
5. However, looking at our daily chart, a hammer were formed on the 29/12/11 signaling the end of current bear, thus gives hope for more bulls for the yellow metal. Resistance comes in the form of fibo levels, with the nearest level, 50.0% lies at $1614.37. If you take price action as your field of study, $1600 stands as a strong resistance or psycho level. Looking north, fibo level 38.2% or $1687.05 is the second resistance. Our gap at $1682 prove to be quite significant too. Next resistance is at fibo level 23.6%  ($1777). Our psycho level $1800 is our strong resistance level.
6. Daily RSI showed some strength to the upside, but as long as it stays below 50, bear is still in control.
7. To get things more interesting, I will draw a fibo level from the 2008 drop.

8. 

   Gold Weekly

9. Taking fibonacci as our field of study, fibo level 38.2% at $1448.01 is within reach, especially if you’re taking the RSI weekly into account. A drop to that level would attract more bargain hunters especially for the Asians, particularly the jeweleries producers.
10. Fundamentals plays a major role in determining the gold’s supply and demand activities. I reckon more reading for you guys from now on. Technicals and sentiment trading are in tandem now as the psychological factor plays the driving force factor behind the traders and investors actions.

Trade wisely! And Happy piping!

Shufaad