Overview:
Since our last analysis, gold has been trading downwards. The price tested the level of 1,225.25 in an average volume. Our Fibonacci retracement 38.2% at the price of 1,234.00 held successful, that action led the price to start downward movement. According to the daily time frame, we can observe demand in a volume below the average I have placed Fibonacci retracement to find resistance levels that price breaks the level of 1,234.00 and I got Fibonacci retracement 61.8% at the price of 1,242.00. Anyway, if we see larger reaction from sellers aroud our resistance, a testing of the level of 1,211.00 (Fibonacci retracement 61.8%) will be possible.
Daily pivot Fibonacci points:
Resistance levels:
R1: 1,234.11
R2: 1,237.25
R3: 1,242.33
Support levels
S1: 1,223.95
S2: 1,220.81
S3: 1,215.73
Trading recommendations: Buying gold at this stage looks risky since price didint broke Fibonacci retracement 38.2%.
The material has been provided by InstaForex Company - www.instaforex.com
