Overview:
Since our last analysis, gold has been trading downwards. As we expected, the price tested the level of 1,199.56 in an ultra high volume (selling climax). Our Fibonacci retracement 61.8% at the price of 1,210.00 is broken, which is a sign that the price go to test the level of 1,183.00 (swing low like support). According to the daily time frame, we got demand in a volume below average, which caused the price to start with donward movement. I have placed Fibonacci retracement to find potential resistance levels and I got Fibonacci retracement 38.2% at the price of 1,206.00 (currently on the test) and Fibonacci retracement 61.8% at the price of 1,210.00. Watch for potential selling opportunities after retracement.
Daily pivot Fibonacci points:
Resistance levels:
R1: 1,229.65
R2: 1,234.89
R3: 1,243.37
Support levels
S1: 1,212.69
S2: 1,207.45
S3: 1,198.97
Trading recommendations: Buying gold at this stage looks risky since price has broke Fibonacci retracement 61.8%.
The material has been provided by InstaForex Company - www.instaforex.com
