Since our previous analysis, gold has been moving upwards. As I expected, the price tested the $1,270.00 level in a high volume. Anyway, the price rejected strongly from $1,270.00 and we saw a drop and testing of $1,243.65 in an ultra high volume. According to the daily time frame, I found a strong sign of weakness. The bar closed near the low with very wide spread (range) in a very high volume. According to the 30M time frame, I found a trading range between the price of $1,243.00 and $1,253.00. Due to a strong sign of weakness in the background, watch for potential bearish breakout of trading range to confirm further downward movement. Take profit level is set at the price of $1,228.00.
Daily Fibonacci pivot points:
Resistance levels:
R1: 1,265.00
R2: 1,270.60
R3: 1,279.40
Support levels:
S1: 1,247.60
S2: 1,240.10
S3: 1,233.40
Trading recommendations for today: be careful when buying and watch for potential selling opportunities.
The material has been provided by InstaForex Company - www.instaforex.com