Overview:
Since our last analysis, gold has been trading upwards. The price tested the level of 1,233.14. I have placed Fibonacci retracement to find potential resistance level and I got Fibonacci retracement 38.2% at the price of 1,244.80 and Fibonacci retracement 61.8% at the price of 1,283.00. According to the daily chart, we can observe demand in a volume below above the average. According to previous price action, we got resistance level at the price of 1,230.00 and 1,234.00 (swing high like resistance). If the price breaks the level of 1,234.00 in a high volume, we may see testing the level of 1,244.00. Anyway, we can observe weak demand and neutral bar according to the 4h timeframe, we bearish correctiion is possible. Do not forget, our mid term Fibonacci expansion 100% at the price of 1,193.00 held successful, and that made gold start bullish corrective phase.
Daily pivot Fibonacci points:
Resistance levels:
R1: 1,219.28
R2: 1,.223.86
R3: 1,231.27
Support levels
S1: 1,204.46
S2: 1,199.88
S3: 1,192.47
Trading recommendations: Buying still looks risky since gold is near resistance levels
The material has been provided by InstaForex Company - www.instaforex.com
