Overview:
Since our last analysis, gold has been trading sideways around the price of $1,204.00. According to the daily time frame, we can observe supply in a volume above the average, but the price action is weak (weak supply). I have placed Fibonacci retracement to find potential resistance levels and have got Fibonacci retracement 61.8% at the price of $1,208.00 (on the test). I have also placed Fibonacci expansion to find potential bullish objective points and have got Fibonacci expansion 61.8% at the price of $1,232.00 and Fibonacci expansion 100% at the price of $1,263.00. Major resistance is around the price of $1,220.00. Only if the price breaks that level, we may see a stronger bullish movement. The short-term trend is bullish.
Daily Fibonacci pivot points:
Resistance levels:
R1: 1,205.91
R2: 1,209.35
R3: 1,215.00
Support levels:
S1: 1,194.85
S2: 1,191.50
S3: 1,185.90
Trading recommendations: Be careful when selling gold since we have demand in a high volume, according to the H4 time frame. Buying positions above the level of $1,220.00 are preferable.
The material has been provided by InstaForex Company - www.instaforex.com
