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Analysis of gold for May 5, 2016

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Since our previous analysis, gold has been moving upwards. The price tested the $1,285.78 level in a high volume. On the 4H time-frame chart, I found broken downward channel (bullish flag) in a high volume, which is a sign that selling looks risky. On the 5M time-frame chart, I found successful testing of supply in a low volume. Watch for buying opportunities on the dips. Take profit level is set at $1,301.50.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,289.00

R2: 1,293.00

R3: 1,299.50

Support levels:

S1: 1,276.00

S2: 1,272.00

S3: 1,265.50

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

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