Since our last analysis, gold has been trading downwards. The price tested the level of $1,089.19. According to the daily time frame, we can observe weak demand and small real body, which is a sign of weakness. We can observe a volume spike (buying climax) followed by supply (sign of weakness). I had placed Fibonacci retracement to find potential resistance levels and got Fibonacci retracement 38.2% at the level of $1,092.00, Fibonacci retracement at 50% at the price of $1,093.00, and Fibonacci retracement 61.8% at the level of $1,094.00.
Daily Fibonacci pivot points:
Resistance levels
R1: 1,092.00
R2: 1,099.00
R3: 1,106.00
Support levels:
S1: 1,083.50
S2: 1,079.30
S3: 1,072.00
Trading recommendations: Be careful when buying gold at this stage since we have a fake buying climax in the background.
The material has been provided by InstaForex Company – www.instaforex.com
Overview:
Since our last analysis, gold has been trading downwards. The price tested the level of $1,089.19. According to the daily time frame, we can observe weak demand and small real body, which is a sign of weakness. We can observe a volume spike (buying climax) followed by supply (sign of weakness). I had placed Fibonacci retracement to find potential resistance levels and got Fibonacci retracement 38.2% at the level of $1,092.00, Fibonacci retracement at 50% at the price of $1,093.00, and Fibonacci retracement 61.8% at the level of $1,094.00.
Daily Fibonacci pivot points:
Resistance levels
R1: 1,092.00
R2: 1,099.00
R3: 1,106.00
Support levels:
S1: 1,083.50
S2: 1,079.30
S3: 1,072.00
Trading recommendations: Be careful when buying gold at this stage since we have a fake buying climax in the background.
The material has been provided by InstaForex Company – www.instaforex.com
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