Recently, gold has been trading upwards. As I expected, the price tested the level of $1,150.45 in ultra-high volume. Using the market profile, I found today's point of control at the price of $1,137.35 on the 30M time frame. According to the 5M time frame, I found buying climax and trap upwards move, which are major sign of weakness. Be careful when buying gold at this stage despite the fact that it is trading above 21SMA. My advice is to watch for potential bearish opportunities due to massive climax in the background. Downward targets are set at the price of $1,140.22 and $1,137.35. Anyway, if the price continues to rise, gold may re-test high at the level of $1,150.00.
Resistance levels:
R1: 1,135.65
R2: 1,136.15
R3: 1,136.90
Support levels:
S1: 1,134.25
S2: 1,133.20
S3: 1,132.80
Trading recommendations for today: watch for potential selling opportuniuties due to massive buying climax in the background.
The material has been provided by InstaForex Company - www.instaforex.com