Since our last analysis, Gold has been trading downwards, as we expected, the price tested the level of 1,291.38 on volume above the average. According to the daily chart, we can observe supply demand bar on volume above the average, which is a good sign for the further downward movement. Gold is in progress of bearish corrective phase and I’ve placed Fibonacci Retracement to find the first down station. I got major Fibonacci Retracement 38.2% at the price of 1,312.00 (already met) and Fibonacci Retracement 61.8% at the price of 1,263.00. We can also observe previous swing high zone at the price of 1,279.00, which may be a good support zone for Gold. Next down stations on short-term prospective are the levels of 1,279.00-1,263.00. Be careful with short-term buying and watch for selling opportunities after retracements. Anyway, we may see potential bullish reaction on intraday frames before we continue with more bearish movement, and resistance for intraday traders is at the price of 1,300.70 (Fibonacci retracement 61.8%)
Daily pivot Fibonacci points:
Resistance levels:
R1: 1,314.48
R2: 1,318.62
R3: 1,325.30
Support levels:
S1: 1,301.12
S2: 1,296.98
S3: 1,290.30
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 downwards, as
we expected, the price tested the level of 1,291.38 on volume above the average.
According to the daily chart, we can observe supply demand bar on volume above
the average, which is a good sign for the further downward movement. Gold is in
progress of bearish corrective phase and I’ve placed Fibonacci Retracement to
find the first down station. I got major Fibonacci Retracement 38.2% at the
price of 1,312.00 (already met) and Fibonacci Retracement 61.8% at the price of
1,263.00. We can also observe previous swing high zone at the price of 1,279.00,
which may be a good support zone for Gold. Next down stations on short-term
prospective are the levels of 1,279.00-1,263.00. Be careful with short-term buying
and watch for selling opportunities after retracements. Anyway, we may see
potential bullish reaction on intraday frames before we continue with more
bearish movement, and resistance for intraday traders is at the price of 1,300.70
(Fibonacci retracement 61.8%)
Daily pivot Fibonacci points:
Resistance levels:
R1: 1,314.48
R2: 1,318.62
R3: 1,325.30
Support levels:
S1: 1,301.12
S2: 1,296.98
S3: 1,290.30
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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