Overview:
Since our last analysis, gold has been trading downwards. The price tested the level of $1,175.07. According to the daily time frame, we can observe a supply in a ultra high volume (selling climax), which is a sign that selling at this stage looks risky. I had placed Fibonacci retracement to find potential support level and got Fibonacci retracement 61.8% at $1,174.00. I had also placed Fibonacci expansion levels to find potential bullish objective points. I got Fibonacci expansion 61.8% at the level of $1,224.00. Major resistance is seen around the level of $1,220.00. The short-term trend is neutral. Anyway, if the price breaks the level of $1,174.00 in an high volume, we may see potential testing the level of $1,147.00.
Daily Fibonacci pivot points:
Resistance levels:
R1: 1,179.37
R2: 1,179.73
R3: 1,180.30
Support levels:
S1: 1,178.23
S2: 1,177.80
S3: 1,177.00
Trading recommendations: Selling climax according to the daily time frame, selling gold looks risky.
