Overview:
Gold has been trading downwards. The price has tested the level of $1,147.03 in an ultra high volume (selling climax). According to the daily time frame, we can observe selling climax (potential hidden buying) in the background. According to the H1 time frame, our support cluster around the price of $1,162.00 got broken in an ultra high volume. Also, we can observe strength near the price of $1,147.00, which is a sign that bullish correction is possible. The first resistance level is at the price of $1,159.00. If the price breaks the level of $1,159.00, we may see possible testing of the level of $1,163.00, $1,174.00. Selling looks risky at this stage because of the climatic action on the low. The short-term trend is bearish.
Daily Fibonacci pivot points:
Resistance levels
R1: 1,165.30
R2: 1,171.00
R3: 1,179.00
Support levels:
S1: 1,147.00
S2: 1,142.00
S3: 1,133.00
Trading recommendations: Supply in an ultra high volume is in the background (selling climax). Be careful when selling around the price of $1,147.00 since the price created support there. Bullish phase is in progress. Watch for selling opportunities only if you see weak demand near resistance levels.
The material has been provided by InstaForex Company - www.instaforex.com