Overview :
Since our last analysis, gold has been trading upwards. As we expected, the price rejection from the level of 1,146.00 and tested the level of 1,178.54 in an ultra high volume. Our major Fibonacci expansion 161.8% at the price of 1,146.00 held strongly, which is a sign that we may see a potential larger bullish phase and even reverse in a mid-term perspective. I have placed Fibonacci retracmeent from the most recent swings. I got Fibonacci retracment 38.2% at the price of 1,179.00 (currently on the test) and Fibonacci retracment 61.8% at the price of 1,207.00. Be careful when selling gold and watch for potential buying opportunities. If the price breaks the level of 1,179.00 in a high volume and strong price action, we may see possible testing the level of 1,207.00.
Daily pivot Fibonacci points:
Resistance levels:
R1:1,175.36
R2: 1,177.24
R3: 1,180.30
Support levels:
S1: 1,169.24
S2: 1,167.36
S3: 1,164.30
Trading recommendations: Selling gold at this stage looks risky since we got strong rejection from our major support.
The material has been provided by InstaForex Company - www.instaforex.com
