Overview :
Since our last analysis, gold has been trading downwards. As we had expected, the price tested the level of $1,183.79 in a high volume. According to the daily time frame, we can observe a supply in a volume above the average. The price broke our Fibonacci retracement 38.2% ($1,194.00). We may see potential testing at $1,177.00-$1,174.00. The short-term trend is bearish. Be careful when buying and watch for potential selling opportunities after retracement (correction). Anyway, according tothe 4H time frame we can observe a weak supply (high volume supply and weak price action). Just if the price breaks the level of $1,183.00, we may see potential testing of the level of $1,177.00-$1,174.00.
Daily Fibonacci pivot points:
Resistance levels :
R1: 1,199.25
R2: 1,203.47
R3: 1,210.27
Support levels :
S1: 1,185.67
S2: 1,181.00
S3: 1,174.80
Trading recommendations: Be careful when selling gold at this stage since we got weak supply according to the 4H time frame.
The material has been provided by InstaForex Company - www.instaforex.com
