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Gold analysis for October 04, 2016

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Since our previous analysis, gold has been trading downwards. The price tested the level of $1,306.63. According to the 4H time frame, I found a large falling wedge formation (bullish formation). The price is in the middle of the falling wedge. Anyway, according to the 30M time frame and using market profile analysis, I found a point of control for yesterday at the price of $1,315.50. Today, I found successful test of supply at the level of $1,307.45, which is a sign that Gold may rise. Only if the price breaks the level of $1,307.50, we may see downward continuation.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,314.60

R2: 1,316.65

R3: 1,319.95

Support levels:

S1: 1,308.00

S2: 1,306.00

S3: 1,302.75

Trading recommendations for today: Watch for buying opportunities. Take profit level is set at the price of $1,315.50.

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