Overview:
Since our last analysis, gold has been trading sideways at the price of $1,234.00. In the daily time frame, I found a demand bar with a weak close, but in a high volume, which means that demand is still observed. At this stage, selling looks risky. Our key MA`s are heading upwards (upward trend). The key resistance level is seen at $1,262.70. If the price breaks the level of $1,262.70 in a high volume, we may see potential testing of $1,307.00. In the M30 time frame, I found a fake breakout of an upward trend line, which is a sign of strength.
Daily Fibonacci pivot points:
Resistance levels:
R1: 1,239.65
R2: 1,241.80
R3: 1,245.00
Support levels:
S1: 1,232.50
S2: 1,230.00
S3: 1,126.80
Trading recommendations: be careful when selling gold and watch for potential buying opportunities on dips.
The material has been provided by InstaForex Company - www.instaforex.com