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Analysis of gold for March 10, 2016

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Overview :

Since our last analysis was published, gold has been trading downwards. As I expected, the price tested the $1,236.95 level in a high volume. In the daily time frame, I found a neutral bar, which is a sign of strenght, and an upward trendline, which was held successfully. Intraday selling looks risky at this stage. On the H4 time frame chart, I found bullish engulfing pattern.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,258.85

R2: 1,262.40

R3: 1,268.25

Support levels:

S1: 1,247.25

S2: 1,243.65

S3: 1,237.85

Trading recommendations for today: be careful when selling gold at this stage and watch for potential intraday buying opportunities.

The material has been provided by InstaForex Company - www.instaforex.com