Overview :
Since our last analysis, gold has been trading downwards. As we expected, the price tested and rejected from the level of 1,142.64 in an ultra high volume. According to the daily time frame, we can can observe strong demand on the market, which is a sign that selling at this stage looks very risky. Our Fibonacci expansion 61.8% at the price of 1,147.00 held successful, which caused price to start with upward movement. According to the 4H time frame, we can observe a gap zone and gold managed to break above the gap zone, which confirmed a potential bullish phase. I have placed Fibonacci expansion to find potential resistance levels. I got Fibonacci expansion 61.8% at the price of 1,189.00, Fibonacci expansion 100% at the price of 1,217.00 and Fibonacci expansion 161.8% at the price of 1,263.00. My advice is to watch for potential bullish opportunities on the lows.
Daily pivot Fibonacci points:
Resistance levels:
R1: 1,155.87
R2: 1,159.57
R3: 1,165.57
Support levels:
S1: 1,143.86
S2: 1,140.17
S3: 1,134.17
Trading recommendations: Watch for potential buying opportunities after retracement (buy on the lows).
The material has been provided by InstaForex Company - www.instaforex.com
