Recently, the Gold has been trading downwards. The price tested the level of $1,321.70. According to the H4 time – frame, I found a strong supply in the background and increase on ADX on the previous downswing, which is a sign that sellers are in control. The previous rally was on decreasing ADX, which is a sign that buyers are weak. My advice is to watch for potential selling opportunities. I placed Fibonacci expansion to find a potential downward target. I got Fibonacci expansion 161.8% at the price of $1,307.00.
Resistance levels:
R1: $1,334.70
R2: $1,338.90
R3: $1,345.28
Support levels:
S1: $1,324.10
S2: $1,317.80
S3: $1,313.51
Trading recommendations for today: watch for potential selling opportunities.
The material has been provided by InstaForex Company - www.instaforex.com