Overview :
Since our last analysis gold has been trading downwards. The price has tested the level of 1,218.65 in an average volume. According to the H4 time frame, we can test our submajor Fibonacci retracement 61.8% at the price of 1,220.00. We are still waiting for larger activity on the market. 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. According to the 30 minutes time frame, we can observe that strong demand has entered the market in an ultra high volume (buying climax). 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: 1,235.22
R2: 1,237.08
R3: 1,240.10
Support levels :
S1: 1,229.18
S2: 1,227.32
S3: 1,224.30
Trading recommendations: Watch for potential buying opportunities after retracement (buy on the dips).
The material has been provided by InstaForex Company - www.instaforex.com
