Overview:
Since our last analysis, gold has been trading sideways around the price of $1,117.23. As we expected, the price went to test the level of $1,112.33. According to the daily time frame, we can observe a neutral bar (doji) in a volume below the average. The price finaly broke our resistance at the level of $1,115.00. According to the 30M time frame, we can observe a volume spike (selling climax) with a wide range bar, which is a sign that selling gold looks risky. I placed Fibonacci retracement to find potential resistance levels and 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: 1,114.10
R2: 1,114.35
R3: 1,114.80
Support levels:
S1: 1,113.30
S2: 1,112.00
S3: 1,111.00
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