Overview:
Since our last analysis, gold has been trading downwards. The price tested the level of $1,184.14 in a high volume. According to the daily time frame, we can observe a supply in a volume above the average. I had placed Fibonacci retracement to find potential resistance levels and got Fibonacci retracement 61.8% at $1,208.00 (held few times). I had placed Fibonacci expansion to find potential bearish objective points and got Fibonacci expansion 61.8% at $1,185.00 and Fibonacci expansion 100% at $1,170.00. Major resistance is around the level of $1,220.00. Only if the price breaks that level, we may see a strong bullish movement. The short-term trend is neutral. I found trading range between the price of $1,209.00 and $1,188.00. We are waiting for a clear direction for a better entry.
Daily Fibonacci pivot points:
Resistance levels:
R1: 1,200.00
R2: 1,204.06
R3: 1,211.20
Support levels:
S1: 1,185.25
S2: 1,180.90
S3: 1,173.60
Trading recommendations: Gold is in a trading range. If the price breaks up or down in a high volume, the direction will be confirmed. Selling positions below $1,184.00 are preferable.
