Overview:
Gold has been trading upwards. The price tested the level of $1,189.47 in a high volume. In the daily time frame, we can observe a demand bar in a volume below the average (weak demand). The price broke the key support level around $1,185.00. Selling looks very risky at this stage. Also, our main supply trendline got broken. My advice is to watch for potential buying opportunities on dips. I had placed Fibonacci retracement to find potential resistance levels. I got Fibonacci retracement 38.2% (on the test) at $1,189.00, Fibonacci retracement 50% at $1,198.00, and Fibonacci retracement 61.8% at $1,205.00.
Daily Fibonacci pivot points:
Resistance levels:
R1: 1,181.25
R2: 1,183.75
R3: 1,187.75
Support levels:
S1: 1,173.25
S2: 1,170.70
S3: 1,165.00
Trading recommendations: strong support at the level of $1,185.00 is broken in the background. Selling looks very risky. My advice is to watch for potential buying opportunities on dips.
The material has been provided by InstaForex Company - www.instaforex.com