Overview :
Since our last analysis, gold has been trading downwards. The price has tested the level of $1,194.86 in a high volume. According to the daily time frame, we can observe weak demand in a volume below the average. It caused the price to start with downward movement. The price rejected from our Fibonacci retracement 61.8% ($1,204.00). I found support at the price of $1,196.00 so be careful when selling at this stage. The short-term trend is neutral so we need a clear direction for better posibilites. If the price breaks the level of $1,196.00 in a high volume, we may see potential testing of the level of $1,190.00. Anyway, since the price has broken the downward channel (daily), buying opportunities are preferable.
Daily Fibonacci pivot points:
Resistance levels :
R1: 1,209.90
R2: 1,216.56
R3: 1,227.33
Support levels :
S1: 1,188.30
S2: 1,181.70
S3: 1,170.93
Trading recommendations: Be careful when selling gold at this stage since we have a weak supply in the background.
The material has been provided by InstaForex Company - www.instaforex.com
