Overview :
Since our last analysis, gold has been trading upwards. As we expected, the price has tested the level of $1,202.69 in a volume below the average. According to the daily time frame, we can observe weak demand in a volume below average. The short-term trend is neutral, so we need a clear direction for better possibilities. 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. I have placed Fibonacci expansion to find potential resistance levels and I got Fibonacci expansion 61.8% at $1,213.00, Fibonacci expansion 100% at $1,225.00, and Fibonacci expansion 161.8% at $1,243.00.
Daily Fibonacci pivot points:
Resistance levels :
R1: 1,209.90
R2: 1,216.60
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 and rejection from our Fibonacci retracement 38.2%.
The material has been provided by InstaForex Company - www.instaforex.com
