Overview:
Since our last analysis, gold has been trading upwards. As we expected, the price tested the level of 1,235.40 in a volume above average. Since our submajor Fibonacci retracement 38.2% at the price of 1,227.00 held successful, that action led the price to start upward movement. According to the daily time frame, we can observe supply in a volume below average. I have placed Fibonacci retracement to find resistance levels and I got Fibonacci retracement 38.2% at the price of 1,234.85 (currently on the test) and Fibonacci retracement 61.8% at the price of 1,242.00. If the price breaks the level of 1,234.00 in a high volume and healthy price action , we may see testing the level of 1,242.00. Anyway, if we see larger reaction from sellers aroud our resistance, a bearish phase will be possible.
Daily pivot Fibonacci points:
Resistance levels:
R1: 1,231.51
R2: 1,233.13
R3: 1,235.77
Support levels
S1: 1,226.23
S2: 1,224.61
S3: 1,221.97
Trading recommendations: Selling gold at this stage still looks risky since we got strong demand in the background.
The material has been provided by InstaForex Company - www.instaforex.com
