Since our last analysis, gold has been trading sideways, around the price of 1,283.00 on average volume, we are waiting larger movement. 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’ve got smaller reaction from the level 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. The price is currently testing the level of 1,285.00 (submajor Fibonacci retracement 38.2%). If the Gold breaks the level of 1,285.00, next 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: 1,286.63
R2: 1,289.07
R3: 1,293.00
Support levels:
S1: 1,278.77
S2: 1,276.33
S3: 1,272.40
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 sideways,
around the price of 1,283.00 on average volume, we are waiting larger movement.
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’ve got smaller reaction from the
level 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. The price is currently testing the level of 1,285.00
(submajor Fibonacci retracement 38.2%). If the Gold breaks the level of 1,285.00,
next 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: 1,286.63
R2: 1,289.07
R3: 1,293.00
Support levels:
S1: 1,278.77
S2: 1,276.33
S3: 1,272.40
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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