Since our previous analysis, gold has been moving sideways at the price of $1,281.00 in a high volume. I found a massive sell-off in a heavy volume, which is a sign that buying looks very risky and that selling opportunities are preferable. According to the 4H time frame, I found a broken upward trend line in a heavy volume. I placed Fibonacci expansion to find potential downward targets and found Fibonacci expansion 61.8% at the price of $1,275.00, Fibonacci expansion 100% at the price of $1,260.00, and Fibonacci expansion 161.8% at the price of $1,237.40. According to the daily time frame, there is a successful rejection form the previous swing high at the price of $1,302.00. I found an upthrust bar (supply overcame demand) in a heavy volume.
Daily Fibonacci pivot points:
Resistance levels:
R1: 1,294.80
R2: 1.397.50
R3: 1,301.80
Support levels:
S1: 1,286.25
S2: 1,283.60
S3: 1,279.30
Trading recommendations for today: Be careful when buying and watch for selling opportunities on pullbacks.
The material has been provided by InstaForex Company - www.instaforex.com