Since our last analysis, gold has been trading upwards. As I had expected, the price tested the level of $1,083.54 in a high volume. Considerable progress was made since my original bullish trading idea. In the daily time frame, our SMA 10 was broken and this is the first sign of a potential change in the trend’s dynamic. According to the H1 time frame, the price was rejected at the key support level of $1,069.00. I expect it to test the level of $1,088.50. I had placed Fibonacci expansion to find potential profit targets. I got Fibonacci expansion 61.8% at the level of $1,092.50, Fibonacci expansion 100% at the level of $1,108.00 and Fibonacci expansion 161.8% at the level of $1,134.50.
Daily Fibonacci pivot points:
Resistance levels
R1: 1,077.86
R2: 1,080.50
R3: 1,083.30
Support levels:
S1: 1,071.15
S2: 1,069.00
S3: 1,065.70
Trading recommendations: Be careful when selling gold because we can observe strong demand in the background. Watch for potential buying opportunities on dips.
The material has been provided by InstaForex Company – www.instaforex.com
Overview:
Since our last analysis, gold has been trading upwards. As I had expected, the price tested the level of $1,083.54 in a high volume. Considerable progress was made since my original bullish trading idea. In the daily time frame, our SMA 10 was broken and this is the first sign of a potential change in the trend’s dynamic. According to the H1 time frame, the price was rejected at the key support level of $1,069.00. I expect it to test the level of $1,088.50. I had placed Fibonacci expansion to find potential profit targets. I got Fibonacci expansion 61.8% at the level of $1,092.50, Fibonacci expansion 100% at the level of $1,108.00 and Fibonacci expansion 161.8% at the level of $1,134.50.
Daily Fibonacci pivot points:
Resistance levels
R1: 1,077.86
R2: 1,080.50
R3: 1,083.30
Support levels:
S1: 1,071.15
S2: 1,069.00
S3: 1,065.70
Trading recommendations: Be careful when selling gold because we can observe strong demand in the background. Watch for potential buying opportunities on dips.
The material has been provided by InstaForex Company – www.instaforex.com
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