Overview :
Since our last analysis gold has been trading upwards. As we expected, the price has tested the level of 1,266.55 in an ultra high volume. Our Fibonacci expansion 161.8% at the price of 1,265.00 is on the test. According to the H4 time frame, we can observe supply in a volume below the average, which is a sign that selling gold at this stage looks risky. Be careful when selling gold and watch for potential buying opportunities on the lows. We got support level at the price of 1,244.00 (swing high like support). If the price breaks the level of 1,265.00 in a high volume, we may see potential testing of the level of 1,292.00 (submajor Fibonacci retracement 38.2%).
Daily pivot Fibonacci points:
Resistance levels :
R1: 1,268.40
R2: 1,278.10
R3: 1,293.80
Support levels :
S1: 1,237.00
S2: 1,227.97
S3: 1,211.60
Trading recommendations: Watch for potential buying opportunities after retracement (buy on the dips).
The material has been provided by InstaForex Company - www.instaforex.com
