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Gold analysis for March 24 , 2016

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View : Since our last analysis, gold has been trading downwards. As I expected, the price tested the level of $1,212.40. Our head and shoulders formation is still active and so far it is progressing. Our first take profit level at the price of $1,225.00 has been reached.According to the 4H time frame, we can observe strong selling pressure in a high volume. Next, downward take profit level is set at the price of $1,193.00 (major Fibonacci retracement 38.2%). The intraday resistance level is set at the price of $1,225.00. Price is testing the Fibonacci expansion 100% at $1,212.00.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,240.60

R2: 1,247.50

R3: 1,258.60

Support levels:

S1: 1,218.40

S2: 1,211.50

S3: 1,200.45

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