Analysis of gold for December 23, 2016

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Recently, gold has been trading sideways at the price of $1,131.60. Using the market profile, I found today's point of control at the price of $1,131.20 on the 30M time frame. On this chart I found that price is trading above the 21SMA and that there is sluggish supply in the background, which is a sign of strength. Anyway, I found trading range between the price of $1,133.90 (resistance) and $1,127.60 (support). Watch for buying opportunities with the first target at $1,133.00 or for a break of trading range to confirm further direction. If the price breaches support, gold may test the level of $1,125.65.

Resistance levels:

R1: 1,131.70

R2: 1,132.75

R3: 1,134.50

Support levels:

S1: 1,128.25

S2: 1,127.20

S3: 1,125.50

Trading recommendations for today: watch for buying opportunities on the dips or for a break of trading range to confirm further direction.

The material has been provided by InstaForex Company - www.instaforex.com