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Gold analysis for August 03 , 2016

analytics57a1d8502d14a.png

Since our previous analysis, gold has been trading upwards. As I expected, the price tested the $1,367.01 level in a high volume. According to the 1H time frame, I have found that Gold went into correction but watch for breakout of supply trend line to confirm further upward movement. Observing the market profile today, it looks like a very neutral day (non trend) but since yesterday trend day, the consolidation day is normal. The short term trend is upward and selling Gold at this stage looks risky. The first take profit level is set at the price of $1,374.50.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,366.40

R2: 1,371.00

R3: 1,378.50

Support levels:

S1: 1,351.60

S2: 1,347.00

S3: 1,339.60

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

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