Analysis of Gold for May 04, 2018

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Recently, Gold has been trading sideways at the price of$1,309.00. According to the H1 time frame, I found that Gold is trading inside of the upward channel (a potential bearish flag), which is a sign that selling looks risky. I also found a potential expanding diagonal pattern, which is another sign of weakness. My advice is to watch for potential selling opportunities only if you see a valid breakout of flag ($1,305.00). Downward targets are set at the price of $1,301.20 and $1,287.35.

Resistance levels:

R1: $1,318.77

R2: $1,325.38

R3: $1,332.65

Support levels:

S1: $1,304.90

S2: $1,297.65

S3: $1,291.03

Trading recommendations for today: watch for potential selling opportunities if you see a valid breakout of the bearish flag.

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