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Gold analysis for August 26, 2016

analytics57c038bace746.png

Since our previous analysis, Gold has been trading upwards. The price tested the level of $1,328.23 in a high volume. According to the 4H time frame, I found a broken trading range. Anyway, there are two options in my opinion on the gold. The first option is that Gold may reject from strong resistance cluster between the price of $1,329.60-$1.333.00 and then continue lower to test $1,317.15-$1,311.10. The second option is the price breaks the key resistance cluster and then confirm again support, which will signal the bullish view. The first option is more likely to happen but the second option is also on the play.

Hourly Fibonacci pivot points:

Resistance levels:

R1: 1,331.30

R2: 1,332.00

R3: 1,333.50

Support levels:

S1: 1,328.50

S2: 1,327.70

S3: 1,326.30

Trading recommendations for today: Watch for successful rejection of a cluster to confirm entry.

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