Overview:
Gold has been trading upwards. As we expected, the price has tested the level of $1,166.37 in a high volume. According to the daily time frame, we can observe selling climax (hidden buying) in the background. According to the H1 time frame, we can observe that the price has broken resistance at the level of $1,158.00. Bullish phase is in progress. We may see possible testing of the level of $1,174.00. Selling looks risky at this stage because of the climatic action in the background and strenght. There is a chance that the price will come back into our major trading rage between the prices of $1,162.00 and $1,231.00. The short-term trend is neutral.
Daily Fibonacci pivot points:
Resistance levels
R1: 1,164.00
R2: 1,169.00
R3: 1,175.00
Support levels:
S1: 1,151.00
S2: 1,146.00
S3: 1,140.00
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. Selling gold at this stage looks risky.
The material has been provided by InstaForex Company - www.instaforex.com