Overview:
Since our last analysis, gold has been trading sideways around the price of 1,170.00. We got supply in an ultra high volume (selling climax) in the background and sideways movement is normal arfter strong selling pressure. Our swing low at the price of 1,183.00 is broken, so we may expect testing the level of 1,147.00 (major Fibonacci expansion 161.8%). We are facing again very low activity on the market, so we are waiting for a larger volume and stronger price action. According to the 1H timeframe, we got rejection from our Fibonacci expansion 100% at the price of 1,174.00, which is a good sign for further bearish movement. Be careful when buying Gold and watch for potential selling opportunities after retracement.
Daily pivot Fibonacci points:
Resistance levels:
R1:1,172.81
R2: 1,175.73
R3: 1,180.47
Support levels:
S1: 1,163.33
S2: 1,160.41
S3: 1,155.67
Trading recommendations: Buying gold at this stage looks risky since we got rejection from Fibonacci expansion 100%
The material has been provided by InstaForex Company - www.instaforex.com
