Overview :
Since our last analysis gold has been trading upwards. As we expected, the price tested the level of 1,236.51 in a volume below the average. According to the H4 time frame, we can see reaction from buyers and test the resistance level at the price of 1,216.00-1,218.00. We are facing very low volatility on the market due to a bank holiday. Major resistance level is still around the price of 1,307.00 (swing high like resistance). I have placed Fibonacci retracement to find potential resistance levels and got Fibonacci retracement 38.2% at the price of 1,251.00 and Fibonacci retracement 61.8% at the price of 1,272.00. My advice is to watch for potential buying opportunities on the lows (buy on the dips). Anyway, if the price breaks the level of 1,220.00, we may see a possible testing of the level of 1,200.00 before any larger bullish reaction.
Daily Fibonacci pivot points :
Resistance levels :
R1: 1,229.20
R2: 1,229.56
R3: 1,230.13
Support levels :
S1: 1,228.06
S2: 1,227.70
S3: 1,227.13
Trading recommendations: Watch for potential buying opportunities after retracement (buy on the dips).
The material has been provided by InstaForex Company - www.instaforex.com
