Since our last analysis, gold has been trading sideways at $1,231.00. A breakout of the $1,245.50 level is needed for the continuation of the upward movement. On the 4H time frame chart, I found low liquidity on the market. Watch for a successful breakout of $1,245.50 and then try to buy on the dips with the first target near the level of $1,259.00. From the other side, we got a weak closing of the bar from yesterday, which is a sign that we may see a downward correction before the breakout.
Daily Fibonacci pivot points:
Resistance levels:
R1: 1,240.00
R2: 1,243.90
R3: 1,250.00
Support levels:
S1: 1,227.00
S2: 1,223.30
S3: 1,217.00
Trading recommendations for today: Watch for buying opportunities on the dips. Selling looks very risky.
The material has been provided by InstaForex Company - www.instaforex.com