Overview :
Since our last analysis gold has been trading downwards. The price has tested the level of 1,251.82 in a volume above the average. According to the H4 time frame, we got selling climax and potential end of bearish corrective phase (abcd). Our Fibonacci expansion 100 % at the price of 1,262.00 got broken. Be careful when selling gold and watch for potential buying opportunities on the lows (buy on the dips). I have placed Fibonacci retracement from the most recent swings and got Fibonacci retracement 38.2% at the price of 1,254.00. Anyway, if the price breaks the level of 1,254.00 in a strong volume, we may see a possible testing of the level of 1,240.00 (Fibonacci expansion 161.8%).
Daily Fibonacci pivot points :
Resistance levels :
R1: 1,278.05
R2: 1,286.19
R3: 1,299.37
Support levels :
S1: 1,251.69
S2: 1,243.55
S3: 1,230.37
Trading recommendations: Watch for potential buying opportunities after retracement (buy on the dips).
The material has been provided by InstaForex Company - www.instaforex.com
