Since our previous analysis, gold has been trading upwards. As I expected, the price tested the level of $1,357.30 in a high volume. According to the 30M time frame, I found that demand is in control in the market. The price went into correction and I found successful testing of supply at the price of $1,345.75. There is also successful rejection from our 21 SMA, which is ф good sign that we may see further upward continuation. I have placed Fibonacci expansion to find potential upward targets. I found Fibonacci expansion 61.8% at the price of $1,356.00, Fibonacci expansion 100% at the price of $1,363.75 and Fibonacci expansion 161.8% at the price of $1,376.00.
Daily Fibonacci pivot points:
Resistance levels:
R1: 1,347.30
R2: 1.349.40
R3: 1,352.70
Support levels:
S1: 1,340.65
S2: 1,338.65
S3: 1,335.30
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