Overview :
Since our last analysis, gold has been trading downwards. The price tested the level of 1,204.57 in a volume below the average According to the 4H time frame, we can observe weak supply in a volume below the average, which is a sign that selling gold at this stage looks risky. I have placed Fibonacci retracement to find potential support levels and I got Fibonacci retracement 38.2% at the price of 1,201.00 and Fibonacci retracement 61.8% at the price of 1,189.00. Be careful when selling gold and watch for potential buying opportunities on the lows. According to the daily time frame, we can observe high churn volume (high volume supply and weak price action).
Daily pivot Fibonacci points:
Resistance levels:
R1: 1,217.00
R2: 1,219.44
R3: 1,223.37
Support levels:
S1: 1,209.14
S2: 1,206.70
S3: 1,202.77
Trading recommendations: Watch for potential buying opportunities after retracement (buy on the lows).
The material has been provided by InstaForex Company - www.instaforex.com
