Overview:
Since our last analysis, gold has been trading downwards. As we expected, the price tested the level of 1,161.06 in an ultra high volume (selling climax). Our swing low at the price of 1,183.00 is broken, so we we may expect testing the level of 1,147.00 (major Fibonacci expansion 161.8%). According to the daily time frame, we got supply in a high volume, which is a sign that the price may continue with downwad movement. A smaller bullish corrective phase is possible but watch for selling opportunities after retracement.
Daily pivot Fibonacci points:
Resistance levels:
R1: 1,211.55
R2: 1,216.51
R3: 1,224.53
Support levels
S1: 1,195.51
S2: 1,190.55
S3: 1,182.53
Trading recommendations: Buying gold at this stage looks risky since price has broke swing low
The material has been provided by InstaForex Company - www.instaforex.com
