Overview:
Gold has been trading downwards. The price tested the level of $1,185.87 in a high volume but with weak price action (weak supply). The price has returned to our trading range but since we got a sign of strength in the background, we may expect bullish momentum again. According to the daily time frame, we can observe neutral bar in an average volume. The price has broken our supply trendline which is a sign that selling looks very risky. I placed Fibonacci retracement to find potential resistance levels and got Fibonacci retracement 50% at the level of $1,206.00 and Fibonacci retracement 61.8% at the level of $1,212.00.
Daily Fibonacci pivot points:
Resistance levels:
R1: 1,200.35
R2: 1,205.00
R3: 1,213.00
Support levels:
S1: 1,184.55
S2: 1,179.70
S3: 1,171.00
Trading recommendations: The price has broke our trading range upside and my advice is to watch for potential buying opportunities on dips.
The material has been provided by InstaForex Company - www.instaforex.com