Overview:
Since our last analysis, gold has been trading sideways around the price of 1,248.00. We are facing a very calm market day and very low activity. We are still waiting for a larger volume and stronger price action. Our submajor Fibonacci retracement 38.2% at the price of 1,245.00 is again on the test, so be careful when buying gold. If the price breaks the level of 1,245.00 in a high volume, we may see potential testing the level of 1,262.00 (major Fibonacci retracement 38.2%). According to the daily time frame, we can observe weak demand and weak price action. Any larger supply may confirm futher bearish movement and a bearish corrective phase. I have placed Fibonacci retracement to find potential support levels and I got Fibonacci retracement 38.2% at the price of 1,227.00.
Daily pivot Fibonacci points:
Resistance levels:
R1: 1,254.78
R2: 1,257.12
R3: 1,260.90
Support levels
S1: 1,247.22
S2: 1,244.48
S3: 1,241.10
Trading recommendations: Buying still looks risky since gold is near resistance level.
The material has been provided by InstaForex Company - www.instaforex.com
