Overview :
Since our last analysis, gold has been trading upwards. The price tested the level of 1,204.46 in a high volume according to the 4H time frame. Since the price has broken the level of 1,179.00 in a high volume and strong price action, we may see possible testing the level of 1,207.00 in the further period. According to the 1h time frame, we can observe high volume but not so strong price action, which is a sign that we may see possible reaction from sellers (potential bearish corrective phase). Be careful when buying gold at this stage since our Fibonacci retracement 61.8% is on the test. Anyway, my advice is to watch for potential buying opportunities after a bearish corrective phase (buy on the low).
Daily pivot Fibonacci points:
Resistance levels:
R1:1,190.86
R2: 1,193.88
R3: 1,198.77
Support levels:
S1: 1,181.08
S2: 1,178.06
S3: 1,173.17
Trading recommendations: Buying gold at this stage looks risky since we may see reaction from sellers.
The material has been provided by InstaForex Company - www.instaforex.com
