Since our last analysis, gold has been trading upwards. The price tested the level of $1,103.25. According to the daily time frame, we can observe weak demand and small real body. According to the H1 time frame, a fake breakout of our support level at $1,086.00 is taking place in the background. We can also observe volume spike (buying climax), which is a sign that there is strong buyers on the market The price got back into our trading range between the levels of $1,086.00 and $1,118.00. I placed Fibonacci retracement to find potential resistance levels and got Fibonacci retracement 38.2% at the level of $1,127.00, Fibonacci retracement at 50% at the price of $1,141.00, and Fibonacci retracement 61.8% at the level of $1,157.00.
Daily Fibonacci pivot points:
Resistance levels
R1: 1,095.00
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 selling gold at this stage since we have a fake breakout in the background.
The material has been provided by InstaForex Company – www.instaforex.com
Overview:
Since our last analysis, gold has been trading upwards. The price tested the level of $1,103.25. According to the daily time frame, we can observe weak demand and small real body. According to the H1 time frame, a fake breakout of our support level at $1,086.00 is taking place in the background. We can also observe volume spike (buying climax), which is a sign that there is strong buyers on the market The price got back into our trading range between the levels of $1,086.00 and $1,118.00. I placed Fibonacci retracement to find potential resistance levels and got Fibonacci retracement 38.2% at the level of $1,127.00, Fibonacci retracement at 50% at the price of $1,141.00, and Fibonacci retracement 61.8% at the level of $1,157.00.
Daily Fibonacci pivot points:
Resistance levels
R1: 1,095.00
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 selling gold at this stage since we have a fake breakout in the background.
The material has been provided by InstaForex Company – www.instaforex.com
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