Overview :
Since our last analysis, gold has been trading sideways around the price of 1,145.00. We are waiting for a larger volume and stronger price action. Our major Fibonacci expansion 161.8% at the price of 1,146.00 is on the test, so be very careful when selling gold at this stage. According to the 1H time frame, we can observe absorption volume and demand on ultra high volume (buying climax) in the background, which is sign that selling gold at this stage looks risky. Be careful when selling gold and watch for potential buying opportunities. Anyway, if the price breaks the level of 1,146.00 in a high volume and strong price action, we may see a possible testing of the level of 1,035.00 (swing high like support).
Daily pivot Fibonacci points:
Resistance levels:
R1:1,147.44
R2: 1,150.22
R3: 1,154.73
Support levels:
S1: 1,138.42
S2: 1,135.64
S3: 1,131.13
Trading recommendations: Selling gold at this stage looks risky since price is near our support level
The material has been provided by InstaForex Company - www.instaforex.com
