Overview :
Since our last analysis, gold has been trading downwards. The price has tested the level of $1,163.63 in an ultra high volume (selling climax), according to the daily time frame. Our major Fibonacci retracement 61.8% at the price of $1,197.00 got broken. The price rejected from the support level of $1,167.00. According to the H4 time frame, we can observe demand in a volume below the average. Be very careful when selling gold at this stage since we may see a potential absorption volume. Any larger reaction from buyers may cofnrim further bullish phase. We have the first resistance around the price of $1,190.00.
Daily Fibonacci pivot points:
Resistance levels :
R1: 1,175.04
R2: 1,175.97
R3: 1,177.54
Support levels :
S1: 1,172.54
S2: 1,170.90
S3: 1,170.04
Trading recommendations: Watch for potential buying opportunities after a retracement (buy on the dips).
The material has been provided by InstaForex Company - www.instaforex.com
