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Gold analysis for March 16 , 2016

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Since our last analysis, gold has been trading sideways at the price of $1,232.00. It can be seen on the daily time frame chart that the price broke the upward trend line (support) and confirmed potential continuation of a downward trend. According to the 30M time frame, I found a potential intraday bearish flag formation. Watch for a valid breakout of a bearrish flag to confirm a further downward price.Take profit is set at $1,192.50. Watch for potential selling opportunities on the rallies.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,235.40

R2: 1,237.60

R3: 1,240.50

Support levels:

S1: 1,229.40

S2: 1,227.50

S3: 1,224.50

Trading recommendations for today: be careful when buying gold, watch for selling opportunities on rallies.

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