Since our last analysis, gold has been trading upwards, the price tested the level of 1,327.89 on volume above the average. Our previous analysis is still active and buying at this stage looks risky. Gold is around our critical resistance area, the price of 1,338.00. According to daily chart, we can observe a supply bar on volume above the average. According to 4H chart, we can observe a strong supply bar on higher volume, which is a sign that buying at this stage looks risky. I have placed Fibonacci retracement to find potential rejection level for the further downward movement and I got Fibonacci Retracement 61.8 % at the price of 1,343.50. Anyway, if the price breaks the level of 1,344.00 on strong volume, we may see further upward movement and potential testing of the level of 1,353.00 (area of the previous swing high). I’ve placed Fibonacci levels to find potential down stations in case that price starts its corrective phase and I got submajor Fibonacci retracement 38.2% at the price of 1,309.00 and Fibonacci Retracement 61.8% at the price of 1,282.00.
Daily pivot Fibonacci points:
Resistance levels:
R1: 1,340.92
R2: 1,342.14
R3: 1,344.13
Support levels:
S1: 1,336.94
S2: 1,335.72
S3: 1,333.73
Trading recommendation: Trading the metal, be careful with buying since Gold is around its critical area and we are also near the high new ground.
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 1,327.89 on volume above the average. Our previous
analysis is still active and buying at this stage looks risky. Gold is
around our critical resistance area, the price of 1,338.00. According to daily
chart, we can observe a supply bar on volume above the average. According to 4H chart, we can observe a strong supply bar on higher volume, which is a sign that
buying at this stage looks risky. I have placed Fibonacci retracement to find
potential rejection level for the further downward movement and I got Fibonacci
Retracement 61.8 % at the price of 1,343.50. Anyway, if the price breaks the
level of 1,344.00 on strong volume, we may see further upward movement and
potential testing of the level of 1,353.00 (area of the previous swing high). I’ve
placed Fibonacci levels to find potential down stations in case that price
starts its corrective phase and I got submajor Fibonacci retracement 38.2% at
the price of 1,309.00 and Fibonacci Retracement 61.8% at the price of 1,282.00.
Daily pivot Fibonacci points:
Resistance levels:
R1: 1,340.92
R2: 1,342.14
R3: 1,344.13
Support levels:
S1: 1,336.94
S2: 1,335.72
S3: 1,333.73
Trading recommendation: Trading the metal, be careful with
buying since Gold is around its critical area and we are also near the high new
ground.
The material has been provided by InstaForex Company – www.instaforex.com
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