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Gold analysis for December 08, 2016

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Recently, gold has been moving upwards. The price tested the level of $1,180.02 in a high volume. According to the 30M time frame, I found that demand bars in the background closed in the middle and later on I found absorption of demand, which is a sign of weakness. Supply cluster at the price of $1,178.45 looks strong. So, watch for potential selling opportunities. The first downward target is set at the price of $1,171.35.

Resistance levels:

R1: 1,177.90

R2: 1,180.80

R3: 1,185.40

Support levels:

S1: 1,168.70

S2: 1,165.80

S3: 1,161.20

Trading recommendations for today: Watch for potential selling opportunities.

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