Overview:
Gold has been trading downwards. The price tested the level of $1,085.15. According to the daily time frame, we can observe a strong bearish bar in an ultra-high volume (selling climax). According to the H1 time frame, we can observe supply in an ultra-high volume. Since the price has broken support at $1,132.00, we may expect potential testing of the level of $1,035.00 (monthly support). Watch for potential selling opportunities after retracement. Selling climax is active so selling at this stage looks risky because of possible bullish correction.The resistance level is around the price of $1,118.00.
Daily Fibonacci pivot points:
Resistance levels
R1: 1,132.00
R2: 1,133.00
R3: 1,134.00
Support levels:
S1: 1,129.00
S2: 1,128.00
S3: 1,126.00
Trading recommendations: Supply in an ultra-high volume is observed on the market. Watch for a potential selling after retracement.
The material has been provided by InstaForex Company - www.instaforex.com