Overview:
Since our last analysis, gold has been trading downwards. The price tested the level of $1,090.22. According to the daily time frame, we can observe a weak upward bar in a high volume, so buying at this stage looks risky. According to the H1 time frame, we can observe low volatility and weak price actions. Since the price has broken support at $1,132.00, we may expect potential testing of the level of $1,035.00 (monthly support). Watch for potential selling opportunities after retracement. Selling climax is active so selling at this stage looks risky because of a possible bullish correction.The resistance level is around $1,118.00.
Daily Fibonacci pivot points:
Resistance levels
R1: 1,105.85
R2: 1,108.00
R3: 1,111.00
Support levels:
S1: 1,098.00
S2: 1,096.70
S3: 1,093.00
Trading recommendations: Supply in an ultra high volume (selling climax) is in the background. Selling gold at this stage looks risky, so watch for potential retracement. Moreover, every selling climax is potential hidden buying by professionals, so trade carefuly.
The material has been provided by InstaForex Company - www.instaforex.com