Overview:
Gold has been trading upwards. As we expected, the price tested the level of $1,202.11 in an ultra high volume (buying climax). The price has broke the level of $1,195.00 (top of our trading range). According to the daily time frame, we can observe demand in an average volume and strong price action. Also, the price has broke our supply trendline, which is a sign that selling looks very risky. I placed Fibonacci retracement to find potential resistance levels and got Fibonacci retracement 50% at the price of $1,206.00 and Fibonacci retracement 61.8% at the price of $1,212.00.
Daily Fibonacci pivot points:
Resistance levels:
R1: 1,195.75
R2: 1,197.50
R3: 1,200.00
Support levels:
S1: 1,190.00
S2: 1,188.00
S3: 1,185.50
Trading recommendations: The price has broke our trading range upside and my advice is to watch for potential buying opportunities on the dips.
The material has been provided by InstaForex Company - www.instaforex.com