Overview :
Since our last analysis, gold has been trading downward. The price tested and rejected from the level of 1,183.57. Our corrective Fibonacci expansion 161.8% at the price of 1.195.00 has been held successfully, which caused price to start with an upward movement. I placed Fibonacci retracement to find potential resistance level and got Fibonacci retracement 61.8% at the price of 1.217.00. According to the 1H time frame, we can observe selling climax and after it an absorption volume, which makes gold very risky for selling. So, selling gold at this stage looks risky, watch for potential buying oppoprtunities. According to the daily time frame, we got weak supply in a volume below the average.
Daily pivot Fibonacci points:
Resistance levels:
R1: 1,201.26
R2: 1,206.24
R3: 1,214.30
Support levels:
S1: 1,185.14
S2: 1,180.16
S3: 1,172.10
Trading recommendations: Watch for potential buying opportunities after retracement (buy on the lows).
The material has been provided by InstaForex Company - www.instaforex.com
