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Since our last analysis, gold has been trading upwards. The price tested the level of $1,259.94 . Our head and shoulders formation is still active. I found successful rejection from the neckline, which is a good sign for further downward movement. According to the 4H time frame, I found that weakness appeared. According to the 5M time frame, I found a volume spike (buying climax) and a strong sign of weakness. Later on, we saw up-thrust bars and no demand bars, which confirmed professional selling. First, take profit level is set at the price of $1,240.00.
Daily Fibonacci pivot points:
Resistance levels:
R1: 1,252.70
R2: 1,255.80
R3: 1,260.95
Support levels:
S1: 1,242.55
S2: 1,239.40
S3: 1,234.40
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