Since our previous analysis, gold has been trading downwards. As I expected, the price tested the level of $1,337.87 in an average volume. According to the H1 time frame, I found a lack of supply at the level of $1,330.00. It is very risky to sell at this stage. There is strong bullish divergence on the RSI oscillator and a lack of selling pressure according to the volume analysis. I placed Fibonacci retracement to find potential resistance levels and got Fibonacci retracement 38.2% at the price of $1,343.00. According to the daily time frame, I found very high effort (volume) with very weak price action, which is sign of strength.
Daily Fibonacci pivot points:
Resistance levels:
R1: 1,335.00
R2: 1,336.40
R3: 1,339.80
Support levels:
S1: 1,329.30
S2: 1,327.50
S3: 1,324.60
Trading recommendations for today: Selling looks very risky. Watch for buying opportunities.
The material has been provided by InstaForex Company - www.instaforex.com