Overview:
Since our last analysis, gold has been trading upwards. The price tested the level of $1,097.13. In the daily time frame, we can observe a a weak close of a supply bar (bar closed on the middle) . Buying at this stage looks risky since the price rejected our strong resistance. The intraday trend is neutral. In the H1 time frame, I found a volume spike (buying climax) and a wide spread of bars. Buying at this stage looks very risky. An intraday target is set at the level of $1,071.00. Be careful when buying gold at this stage and watch for potential selling opportunities. The key support is found at the level of $1,046.00. A potential breakout of the level of $1,046.00 will confirm short-term continuation of the downward trend.
Daily Fibonacci pivot points:
Resistance levels:
R1: 1,090.75
R2: 1,091.25
R3: 1,092.00
Support levels:
S1: 1,089.00
S2: 1,088.55
S3: 1,087.70
Trading recommendations: Watch for potential selling opportunities, buying looks risky.
The material has been provided by InstaForex Company - www.instaforex.com