Since our last analysis, gold has been trading downwards, as we expected, the price tested the level of 1,277.52 on average volume. Our previous analysis is still active and we got good progress. According to the daily chart, we can observe supply bar on volume just below the average. There is an also broken upper channel in the background, which is another good sign for potential healthy bearish movement. We got our first down station met at the price of 1,279.00 (previous swing high zone). Gold is in progress of bearish corrective phase and I’ve placed Fibonacci Retracement to find the first down station. I got Fibonacci Retracement 61.8% at the price of 1,263.00. If the price breaks the level of 1,279.00 on higher volume, we may see testing the level of 1,263.00, otherwise Gold may start bullish correction. If the Gold starts bullish correction, the first resistance may be at the price of 1,290.00 (Fibonacci retracement 61.8%). Be careful with short-term buying and watch for selling opportunities after retracements.
Daily pivot Fibonacci points:
Resistance levels:
R1: 1,295.18
R2: 1,298.98
R3: 1,305.13
Support levels:
S1: 1,282.88
S2: 1,279.08
S3: 1,272.93
Trading recommendation: Trading the metal, be careful with buying at this stage since gold is in progress of bearish corrective phase. Watch for selling opportunities after retracement.
The material has been provided by InstaForex Company – www.instaforex.com
Overview:
Since our last analysis, gold has been trading downwards, as
we expected, the price tested the level of 1,277.52 on average volume. Our
previous analysis is still active and we got good progress. According to the
daily chart, we can observe supply bar on volume just below the average. There
is an also broken upper channel in the background, which is another good sign
for potential healthy bearish movement. We got our first down station met at the price
of 1,279.00 (previous swing high zone). Gold is in progress of bearish
corrective phase and I’ve placed Fibonacci Retracement to find the first down
station. I got Fibonacci Retracement 61.8% at the price of 1,263.00. If the
price breaks the level of 1,279.00 on higher volume, we may see testing the
level of 1,263.00, otherwise Gold may start bullish correction. If the Gold
starts bullish correction, the first resistance may be at the price of 1,290.00 (Fibonacci
retracement 61.8%). Be careful with short-term buying and watch for selling
opportunities after retracements.
Daily pivot Fibonacci points:
Resistance levels:
R1: 1,295.18
R2: 1,298.98
R3: 1,305.13
Support levels:
S1: 1,282.88
S2: 1,279.08
S3: 1,272.93
Trading recommendation: Trading the metal, be careful with
buying at this stage since gold is in progress of bearish corrective phase.
Watch for selling opportunities after retracement.
The material has been provided by InstaForex Company – www.instaforex.com
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