Overview:
Since our last analysis, gold has been trading sideways at the price of $1,233.00. In the daily time frame, I found a supply in a volume below the average, which means that demand is still observed. At this stage, selling looks risky. Our key MA`s are heading upwards (upward trend). The key resistance level is seen at $1,262.70. If the price breaks the level of $1,262.70 in a high volume, we may see potential testing of $1,307.00. According to 4H time frame, I found successful rejection from upward trendline at the price of $1,210.00. Demand overcame supply near upward trendline, which is a sign of strength.
Daily Fibonacci pivot points:
Resistance levels:
R1: 1,233.25
R2: 1,224.93
R3: 1,227.60
Support levels:
S1: 1,217.95
S2: 1,216.30
S3: 1,123.50
Trading recommendations: be careful when selling gold and watch for potential buying opportunities on dips.
The material has been provided by InstaForex Company - www.instaforex.com