Overview:
Since our last analysis, gold has been trading sideways around the level of $1,202.00. According to the daily time frame, we can observe a supply in a high volume but with very weak price action (weak supply). 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 neutral. According to the H4 time frame, we can observe supply in an average volume but with weak price action. I had placed Fibonacci expansion to find potential resistance levels and got Fibonacci expansion 61.8% at $1,225.00, Fibonacci expansion 100% at $1,256.00, and Fibonacci expansion 161.8% at $1,306.00. I had also placed Fibonacci retracement from the 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: 1,212.95
R2: 1,216.00
R3: 1,220.90
Support levels:
S1: 1,203.00
S2: 1,200.00
S3: 1,195.00
Trading recommendations: Watch for potential buying opportunities after bearish correction. The first major resistance is around the level of $1,224.00.
