Overview:
Gold has been trading downwards. As we expected, the price tested the level of $1,170.18 in an ultra-high volume (selling climax). In the daily time frame, we can observe a bearish bar in a volume below the average. Our trading range between the levels of $1,205.00 and $1,198.00 was finally broken and caused a downward movement. Anyway, selling looks risky at this stage because we got major support around $1,168.88 - $1,162.00. According to the M30 time frame, we can observe a selling climax bar (ultra high volume bar) on our support level. Bullish correction is still possible. I had placed Fibonacci retracement to find potential resistance levels. I got Fibonacci retracement 38.2% at the level of $1,183.00, Fibonacci retracement 50% at $1,188.00, and Fibonacci retracement 61.8% at %1,192.00. The short-term trend is bearish. Watch for selling opportunities if the price breaks major support.
Daily Fibonacci pivot points:
Resistance levels:
R1: 1,185.00
R2: 1,187.50
R3: 1,192.00
Support levels:
S1: 1,175.40
S2: 1,172.50
S3: 1,168.00
Trading recommendations:. Sellers are in control on the market. Be careful when buying gold. Watch for potential selling opportunities below the level of $1,163.00.
The material has been provided by InstaForex Company - www.instaforex.com