Overview :
Since our last analysis, gold has been trading upward. As we expected, the price tested the level of 1,210.57. Our Fibonacci retracement 61.8% at the price of 1.181.00 has been held successfully what caused price to start with an upward movement. According to the H4 time frame, we can observe demand in an ultra high volume (buying climax). My advice is to watch for potential buying opportunities near the lows. According to the daily time frame, we can observe demand in a volume above the average, which is a sign that selling gold at this stage looks risky. I placed Fibonacci retracement to find potential resistance levels and got Fibonacci retracement 38.2% at the price of 1,196.00 and Fibonacci retracement 61.8% at the price of 1,212.00. If the price breaks the level of 1,212.00 in a high volume, we may see a potential testing of the level of 1,237.00.
Daily pivot Fibonacci points:
Resistance levels:
R1: 1,193.22
R2: 1,197.68
R3: 1,204.90
Support levels:
S1: 1,178.78
S2: 1,174.32
S3: 1,176.10
Trading recommendations: Watch for potential buying opportunities after retracement (buy on the lows).
The material has been provided by InstaForex Company - www.instaforex.com
