Overview:
Since our last analysis, gold has been trading downwards. The price tested the level of $1,224.56. In the daily time frame, I found a supply bar in an average volume. Intraday selling looks risky because I found selling climax and a successful test. Anyway, according to the daily time frame, we still have active buying climax that stopped gold from going further upwards, which is a sign that buying gold at this stage on short-term perspective looks risky. Our key MA`s are heading upwards (uptrend). The key resistance level is seen at $1,262.70. If the price breaks the level of $1,262.70 in a high volume, it will confirm potential testing of $1,307.00. Intraday resistance level is set at the price of $1,236.00. My advice is to watch for potential buying opportunities on an intraday basis, but it is very risky to buy gold on short-term prospective at this stage due to buying climax in the background.
Daily Fibonacci pivot points:
Resistance levels:
R1: 1,244.00
R2: 1,248.70
R3: 1,256.00
Support levels:
S1: 1,229.30
S2: 1,224.70
S3: 1,217.30
Trading recommendations for today: Be careful when selling gold and watch for potential buying opportunities on dips.
The material has been provided by InstaForex Company - www.instaforex.com