Overview:
Since our last analysis, gold has been trading upwards. As we expected, the price tested the level of $1,196.97 in a high volume. We can observe demand in a high volume and strong price action in the daily time frame,. The short-term trend is neutral. Our Fibonacci retracement 61.8% at the level of $1,181.00 was held successfully again. I am still expecting bullish movement, so my advice is to focus on buying positions. The first resistance level is seen around $1,200.00. I found corrective downward channel according to the H1 time frame and the price broke and re-tested that channel twice, which is a sign of potential bullish movement. We can also observe inverted head and shoulders formation. The first major resistance is around the level of $1,220.00.
Daily Fibonacci pivot points:
Resistance levels:
R1: 1,195.90
R2: 1,200.00
R3: 1,206.00
Support levels:
S1: 1,179.00
S2: 1,176.30
S3: 1,171.50
Trading recommendations: Be careful when selling gold at this stage and watch for potential buying opportunities (buy on dips).
