Overview:
Since our last analysis, gold has been trading upwards. The price tested the level of 1,296.32 in an ultra high volume according to the 1h time frame. We can observe an ultra high volume (buying climax) according to the 1h time frame, which is a sign that buying looks very risky. Our Fibonacci expansion 61.8% at the price of 1,284.00 is broken. So, we may see potential testing the level of 1,260.00 (Fibonacci expansion 100%). I have placed Fibonacci retracement to find potential resistance levels and I got Fibonacci retracement 38.2% at the price of 1,292.00 and Fibonacci retracement 61.8% at the price of 1,303.00. According to the 4H time frame, I have placed corrective Fibonacci expansion and I found Fibonacci expansion 161.8% at the price of 1,290.00 (currently on the test)
Daily pivot Fibonacci points:
Resistance levels:
R1: 1,286.96
R2: 1,288.68
R3:1,291.41
Support levels:
S1: 1,281.38
S2: 1,279.66
S3: 1,276.87
Trading recommendations: Buying Gold looks risky since the price has broken the support level.
The material has been provided by InstaForex Company - www.instaforex.com
