Overview:
Since our last analysis, gold has been trading upwards. As we had expected, the price tested the level of $1,214.81 in a high volume. According to the daily time frame, we can observe a demand in a high volume. Our Fibonacci retracement 61.8% (support) at $1,174.00 was held successfully. It caused the price to start an upward movement. Major resistance is seen around the level of $1,220.00. The short-term trend is bullish. According to the H4 time frame, we can observe demand in a very high volume. I had placed Fibonacci expansion to find potential resitance levels and got Fibonacci expansion 61.8% at $1,224.00, Fibonacci expansion 100% at $1,255.00, and Fibonacci expansion 161.8% at $1,304.00. I had also placed Fibonacci retracement from most recent upward leg to find potential support levels and got Fibonacci retracement 38.2% at $1,200.00 and Fibonacci retracement 61.8% at $1,190.00.
Daily Fibonacci pivot points:
Resistance levels:
R1: 1,215.35
R2: 1,219.00
R3: 1,125.90
Support levels:
S1: 1,202.90
S2: 1,199.80
S3: 1,192.50
Trading recommendations: Watch for potential buying opportunities after bearish correction. The first major resistance is around the price of $1,224.00.
