Overview:
Since our last analysis, gold has been trading upwards. As we expected, the price went to test the level of $1,112.33. According to the daily time frame, we can observe a bearish bar in a volume below the average. The price finaly broke our resistance at the level of $1,115.00. According to the H1 time frame, we can observe that our resistance at the price of $1,115.00 now acts like support. I found strong upward trendline and the price respected well that trendline, which is a sign that buyers are in control and that we may expect bullish movement. I placed Fibonacci retracement to find potential resistance levels. I got Fibonacci retracement 38.2% at the price of $1,127.00 (successfully held), Fibonacci retracement 50% at the price of $1,141.00, and the Fibonacci retracement 61.8% at the price of $1,157.00. According to Wyckoff analysis, we have strong accumulation and bottoming on gold, so watch only for buying opportunities on the dips (after bearish corrections).
Daily Fibonacci pivot points:
Resistance levels
R1: 1,123.05
R2: 1,126.85
R3: 1,131.10
Support levels:
S1: 1,113.10
S2: 1,110.65
S3: 1,104.00
Trading recommendations: Be careful when selling gold at this stage. Watch for buying opportunites. Area around the price of $1,114.00 looks like very strong support and a good buy zone.
The material has been provided by InstaForex Company - www.instaforex.com