Overview:
Since our last analysis, gold has been trading sideways around the price of $1,107.50. The intraday and short-term trends are downward as the price is below the Ichimoku cloud on the daily, H4, and H1 charts. In the daily time frame, we can observe a weak demand bar in a low volume. According to the H4 time frame, we can observe weak demand around the price of $1,110.00. Watch for selling opportunities since our first profit zone around the price of $1,106.00 has been met. The second major support is around the price of $1,083.00. Watch for potential breakout of our support to confirm further downward movement.
Daily Fibonacci pivot points:
Resistance levels
R1: 1,108.90
R2: 1,110.35
R3: 1,112.75
Support levels:
S1: 1,104.15
S2: 1,102.70
S3: 1,110.35
Trading recommendations: Be careful when buying gold at this stage and watch for potential selling opportunities.
The material has been provided by InstaForex Company - www.instaforex.com