Overview:
Since our last analysis, gold has been trading upwards, as we expected, the price tested the level of 1,250.56 on volume above the average according to the 4H chart. I have placed Fibonacci expansion to find a potential end of the bearish movement and I've got submajor Fibonacci expansion 161.8% at the price of 1,215.00 and major Fibonacci expansion 161.8% at the price of 1,143.00. According to the 1H timeframe, we can observe volume divergence on the swing low, which is a sign that we may see possible bullish correction before we continue with further bearish movement. Resisntace levels are the price of 1,251.00 (swing low) and the price of 1,269.00. Be careful with selling Gold at this stage since the price is near the support level. Build selling positions just after bullish correction. Anyway, to confirm further bearish movement, price needs to break the level of 1,240.00 (swing low). According to the Daily chart, there is we can observe no supply bar (weak supply) on the volume below the average so selling at this stage looks risky...
Daily pivot Fibonacci points:
Resistance levels:
R1: 1,249.15
R2: 1,251.49
R3: 1,255.27
Support levels:
S2: 1,239.25
S3: 1,235.47
Trading recommendation: Trading the metal, be careful with short-term selling since the price is near support.
The material has been provided by InstaForex Company - www.instaforex.com
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