Overview:
Since our last analysis, gold has been trading sideways around the price of 1,170.00. We got supply in an ultra high volume (selling climax) and sideways movement is normal arfter strong selling pressure. Our swing low at the price of 1,183.00 is broken, so we may expect testing the level of 1,147.00 (major Fibonacci expansion 161.8%). We are facing very low activity on the market, so we are waiting for a larger volume and stronger price action. According to the 1H timeframe, gold is in a weak bullish corrective phase. I have placed Fibonacci expansion to find potential resistance levels and I got Fibonacci expansion 100% at the price of 1,174.00 and Fibonacci expansion 161.8% at the price of 1,182.00.
Daily pivot Fibonacci points:
Resistance levels:
R1:1,169.79
R2: 1,171.67
R3: 1,174.33
Support levels:
S1: 1,163.77
S2: 1,161.79
S3: 1,158.73
Trading recommendations: Buying gold at this stage looks risky since the price has broken swing low.
The material has been provided by InstaForex Company - www.instaforex.com
