Overview:
Gold has been trading sideways around the price of $1,168.00. According to the H4 time frame, our support cluster around the price of $1,162.00 got broken but we can observe pin bar, which is a sign for a weak breakout and potential fake breakout. Selling looks risky at this stage, because support at the price of $1,162.00 is still active. The short-term trend has changed from bearish to neutral. We got a new low at the price of $1,157.00. If the price breaks the level of $1,157.00 in a high volume, we may see possible testing of the level of $1,147.00. Otherwise, bullish phase is possible. I am still waiting for larger activity and stronger price action on the market to confirm further direction.
Daily Fibonacci pivot points:
Resistance levels
R1: 1,168.00
R2: 1,172.00
R3: 1,176.00
Support levels:
S1: 1,157.00
S2: 1,154.00
S3: 1,150.50
Trading recommendations: Be careful when selling gold since our strong support at the price of of $1,162.00 is still active. We can observe indecision market. Wait for larger activity and stronger price action to confirm further direction.
The material has been provided by InstaForex Company - www.instaforex.com