Overview :
Since our last analysis, gold has been trading upwards. As we expected, the price tested the level of 1,220.90 in an ultra high volume (buying climax). According to the daily time frame, we can obesrve demand in an ultra high volume (buying climax), which is a sign that buying at this stage looks very risky. Our Fibonacci expansion 100% at the price of 1,217.00 held successfully, which enabled the price to start with downward movement. I have placed Fibonacci retracement to find potential support levels and I got Fibonacci retracement 38.2% at the price of 1,191.00 and Fibonacci retracement 61.8% at the price of 1,172.00. My advice is to look for buying opportunities near the lows (after retracement). Any larger reaction from buyers may confirm further bullish continuation.
Daily pivot Fibonacci points:
Resistance levels:
R1: 1,223.89
R2: 1,142.61
R3: 1,272.90
Support levels:
S1: 1,163.31
S2: 1,144.59
S3: 1,114.30
Trading recommendations: Watch for potential buying opportunities after retracement (buy on the lows).
The material has been provided by InstaForex Company - www.instaforex.com
