Since our previous analysis, gold has been trading sideways at the price of $1,320.00. According to the 4H time frame, I found strength in the background. I found bullish engulfing pattern, a double bar low with a higher close with ultra high volume demand and the morning star formation. All of these formations happened near the strong support at the price of $1,312.00. I have placed Fibonacci expansion to find potential upward targets. I got Fibonacci expansion 61.8% at the price of $1,326.00 and Fibonacci expansion 100% at the price of $1,335.00.
Daily Fibonacci pivot points:
Resistance levels:
R1: 1,320.70
R2: 1,321.90
R3: 1,323.85
Support levels:
S1: 1,316.80
S2: 1,315.60
S3: 1,313.65
Trading recommendations for today: selling looks risky, watch for buying opportunities.
The material has been provided by InstaForex Company - www.instaforex.com