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Since our last analysis, gold has been trading upwards. The price tested the $1,223.00 level. Our head and shoulders formation is still active and it has been progressing so far. Our first take profit level at $1,225.00 has been reached. Next, downward take profit level is set at $1,193.00 (major Fibonacci retracement 38.2%).On the 30M time frame chart I found a potential end of bullish correction and starting of bearish continuation. I found volume spike (buying climax) in the background, followed by up-thrust bars and high effort with low result bars, which is a clear sign of weakness. Watch for selling opportunties. First intraday take profit level is set at $1,212.50.
Daily Fibonacci pivot points:
Resistance levels:
R1: 1,221.70
R2: 1,223.40
R3: 1,226.00
Support levels:
S1: 1,216.30
S2: 1,214.60
S3: 1,211.90
Trading recommendations for today: be careful when buying gold, watch for selling opportunities on rallies.
The material has been provided by InstaForex Company - www.instaforex.com