Overview :
Since our last analysis, gold has been trading sideways around the price of 1,228.00. There is very low activity on the market and we are waiting for larger volume and price action. Our resistance level at the price of 1,230.00 held successful, which is a sign that buying at this stage looks risky. According to the daily chart, we can observe weak demand in a volume above the average. If the price breaks the level of 1,234.00 in a high volume, we may see the testing of the level of 1,244.00 (Fibonacci retracement 38.2%). Anyway, since gold has started bearish corrective phase, I placed Fibonacci retracement to find potential support levels and I got Fibonacci retracement 38.2% at the price of 1,214.00 and Fibonacci retracement 61.8% at the price of 1,202.00.
Daily pivot Fibonacci points:
Resistance levels:
R1: 1,232.42
R2: 1,234.28
R3: 1,237.80
Support levels
S1: 1,225.78
S2: 1,223.72
S3: 1,220.40
Trading recommendations: Buying still looks risky since gold is near resistance levels
The material has been provided by InstaForex Company - www.instaforex.com
