Since our previous analysis, gold has been trading downwards. The price tested the level of $1,305.25 in a low volume. According to the 4H time frame, I found a strong upward trend in the background. The price went into a bearish correction, which is a normal reaction after the massive demand in the background. I found testing of 21SMA, Fibonacci retracement retracement 50% and Fibonacci expansion 61.8%. Be careful when selling gold at this stage. We may see further upward continuation. A target is set at the price of $1,358.00.
Daily Fibonacci pivot points:
Resistance levels:
R1: 1,331.00
R2: 1.334.00
R3: 1,338.00
Support levels:
S1: 1,322.50
S2: 1,319.40
S3: 1,314.90
Trading recommendations for today: Selling gold looks risky at this stage. So, watch for potential buying opportunities.
The material has been provided by InstaForex Company - www.instaforex.com