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Gold analysis for May 18 , 2016

analytics573c525031663.png

Since our previous analysis, gold has been moving sideways at the price of $1,273.00. According to the daily time frame, I found weakness in the background. Bullish bar closed in the middle. Anyway, according to the 4h time frame, I found a downward channel. There are two options in my opinion. The breakout of level $1,268.00 should confirm downward continuation and potential testing of $1,256.00. The breakout of $1,288.60 should confirm upward movement and potential testing of $1,302.80.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,282.70

R2: 1,285.50

R3: 1,290.00

Support levels:

S1: 1,273.55

S2: 1,270.70

S3: 1,266.00

Trading recommendations for today: Watch for successful breakout in a high volume to confirm further direction.

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