Since our previous analysis, gold has been trading downward. As I expected, the price tested the level of $1,261.08 in a high volume. The analysis from yesterday is still active and it is a good progress so far. I found a massive sell-off in a heavy volume in the background, which is a sign that buying looks very risky and that selling opportunities are preferable. According to the 4H time frame, there is testing of Fibonacci expansion 100% at the price of $1,262.00. If the price breaks the level of $1,262.00 in a high volume, we may see further downward continuation and potential testing of $1,240.00.
Daily Fibonacci pivot points:
Resistance levels:
R1: 1,287.90
R2: 1.294.50
R3: 1,304.90
Support levels:
S1: 1,266.80
S2: 1,260.30
S3: 1,249.70
Trading recommendations for today: Be careful when buying and watch for selling opportunities on pullbacks.
The material has been provided by InstaForex Company - www.instaforex.com