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Gold analysis for July 25, 2016

analytics57960324805c5.png

Since our previous analysis, gold has been trading downwards. The price tested the level of $1,313.38 in a high volume. According to the 30M time frame, I found a sign of strength in the background. There is a climax bar and very high volume down bar but closed in the middle. I saw successful testing of supply, which is a sign that sellers look risky. I have placed Fibonacci expansion to find potential upward targets. I got Fibonacci expansion 100% at the price of $1,319.50 and Fibonacci expansion 161.8% at the price of $1,323.00.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,331.15

R2: 1,331.80

R3: 1,332.85

Support levels:

S1: 1,329.00

S2: 1,328.30

S3: 1,327.30

Trading recommendations for today: selling looks risky, watch for buying opportunities.

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