Overview :
Since our last analysis, gold has been trading downwards. As we expected, the price tested the level of 1,197.00 in a volume below average. According to the daily time frame, we can obesrve low activity, which is a sign that buying looks risky. Our Fibonacci expansion 61.8% at the price of 1,197.00 is on the test. If the price breaks the level of 1,197.00, we may see the level of 1,191.00-1,186.00 is tested. I have placed Fibonacci retracement to find potential support levels and I got Fibonacci retracement of 38.2% at the price of 1,191.00 and Fibonacci retracement of 61.8% at the price of 1,172.00. My advice is to look for buying opportunities near the lows (after retracement). Any larger reaction from buyers may confirm further bullish continuation.
Daily pivot Fibonacci points:
Resistance levels:
R1: 1,212.17
R2: 1,215.09
R3: 1,219.83
Support levels:
S1: 1,202.69
S2: 1,199.77
S3: 1,195.03
Trading recommendations: Watch for potential buying opportunities after retracement (buy on the lows).
The material has been provided by InstaForex Company - www.instaforex.com
