Overview:
Since our last analysis, gold has been trading downwards. The price tested the level of $1,210.84 in a high volume. We can observe demand in a high volume but weak price action in the daily time frame. The short-term trend is bullish. The first major resistance at the level of $1,220.00 is on the test. If the price breaks the level of $1,220.00 in a high volume and strong price action, we may see possible testing of the level of $1,250.00 (Fibonacci expansion 100%). Be careful when selling and watch for potential buying opportunities above the price of $1,220.00. I found support area around the levels of $1,210.00-$1,214.00.
Daily Fibonacci pivot points:
Resistance levels:
R1: 1,227.65
R2: 1,231.00
R3: 1,237.40
Support levels:
S1: 1,215.50
S2: 1,211.20
S3: 1,205.50
Trading recommendations: Be careful when selling gold at this stage and watch for potential buying opportunities (buy on dips).
