Analysis of Gold for February 04, 2019

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Buying climax in the background on Gold evolved into larger weakness as I expected. The price tested the level of $1.310.00. We found a confirmed head and shoulders pattern, which is another strong sign of weakness. The key short-term resistance remains at $1.323.00. As long as this resistance is holding, you should watch for selling opportunities. The short-term support is set at the price of $1.308.00 and the breakout of the support would confirm a potential test of $1.297.75.

R1: $1.323.00

R2: $1.324.55

R3: $1.325.60

Pivot: $1.322.80

S1: $1.320.75

S2: $1.319.80

S3: $1.318.35

Trading recommendation: We are short on Gold from $1.311.00 and protective stop at $1.322.00. First objective target is set at the price of $1.297.75.

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