Overview :
Since our last analysis, gold has been trading upwards. As we had expected, the price tested the level of $1,208.82 in a high volume. According to the daily time frame, we can observe a demand in a volume below the average. I have placed Fibonacci retracement to find potential resistance levels and have got Fibonacci retracement 61.8% at the price of $1,208.00 (on the test). I have also placed Fibonacci expansion to find potential bullish objective points and have got Fibonacci expansion 61.8% at the price of $1,232.00 and Fibonacci expansion 100% at the price of $1,263.00. Major resistance is around the price of $1,220.00. Only if the price breaks that level, we may see stronger bullish movement. The short-term trend is bullish.
Daily Fibonacci pivot points:
Resistance levels :
R1: 1,204.15
R2: 1,207.95
R3: 1,214.00
Support levels :
S1: 1,192.00
S2: 1,188.00
S3: 1,181.90
Trading recommendations: Be careful when selling gold since we have demand in a high volume according to the 4H time frame. Buying positions above the level of $1,220.00 are preferable.
The material has been provided by InstaForex Company - www.instaforex.com
