Overview :
Since our last analysis, gold has been trading sideways around the price of 1,201.00. We are waiting for a larger volume and stronger price action. According to the daily time frame, we can obesrve weak demand in a volume below average, which is a sign that buying at this stage looks very risky. Our Fibonacci expansion of 100% at the price of 1,217.00 held successfully, which enabled the price to start with a downward movement. I have placed Fibonacci retracement to find potential support levels and I got Fibonacci retracement of 38.2% at the price of 1,191.00 (held successful) and Fibonacci retracement of 61.8% at the price of 1,172.00. I have also placed Fibonacci expansion from the most recent swings to find potential end of a bearish corrective phase. I got Fibonacci expansion of 61.8% at the price of 1,197.00, Fibonacci expansion of 100% at the price of 1,186.00 and Fibonacci expansion of 161.8% around the price of 1,169.00. 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: 1,213.94
R2: 1,219.02
R3: 1,227.23
Support levels:
S1: 1,197.52
S2: 1,192.44
S3: 1,184.23
Trading recommendations: Watch for potential buying opportunities after retracement (buy on the lows).
The material has been provided by InstaForex Company - www.instaforex.com
