Overview:
Since our last analysis, gold has been trading downwards. The price tested the level of $1,064.70. According to the daily time frame, I found a strong downward bar in a high volume. Our strong support around the level of $1,075.00-$1,080.00 became strong resistance (changing polarity) now. According to the M5 time frame, I found a volume spike on an up bar (buying climax) in the background and potential intraday distribution trading range. Selling opportunities are preferable. Support level is found at $1,064.50.
Daily Fibonacci pivot points:
Resistance levels
R1: 1,079.00
R2: 1,084.00
R3: 1,091.60
Support levels:
S1: 1,064.85
S2: 1,060.50
S3: 1,052.80
Trading recommendations: Be careful when buying gold since the price has broke our major support level. Watch for potential selling opporutnities.
The material has been provided by InstaForex Company - www.instaforex.com