Since our previous analysis, gold has been moving downwards. The price tested the level of $1,236.30 in a high volume. According to the 30M time frame, I have found changes in the trend dynamic from bullish to bearish. There is a buying climax in the background and today I found no demand bars that is a sign that sellers are in control. Watch for selling opportunities on the pullbacks. I placed Fibonacci retracement to find potential downward targets. I got Fibonacci retracement 38.2% at the price of $1,232.85, Fibonacci retracement 50% at the price of $1,228.00, and Fibonacci retracement 61.8% at the price of $1,223.00.
Daily Fibonacci pivot points:
Resistance levels:
R1: 1,248.60
R2: 1,250.60
R3: 1,253.80
Support levels:
S1: 1,242.00
S2: 1,240.00
S3: 1,236.70
Trading recommendations for today: Be careful when buying gold and watch for selling opportunities.
The material has been provided by InstaForex Company - www.instaforex.com