Overview
Since our last analysis, gold has been trading sideways around the price of 1,223.00. Our resistance level at the price of 1,230.00 held successful, which caused price to start with downard movement. According to the daily chart, we can observe weak demand in a volume above the average, which is a sign that buying gold at this stage looks risky. According to previous price action, we got resistance level at the price of 1,230.00 and 1,234.00 (swing high like resistance). If the price breaks the level of 1,234.00 in a high volume, we may see testing of the level of 1,244.00. 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: 1,231.82
R2: 1,235.28
R3: 1,240.90
Support levels
S1: 1,220.58
S2: 1,217.12
S3: 1,211.50
Trading recommendations: Buying still looks risky since gold is near resistance levels
The material has been provided by InstaForex Company - www.instaforex.com
