Since our last analysis, gold has been trading downwards, as we expected, the price tested the level of 1,285.46 on average volume. Our previous analysis is still active and we got good progress. According to the daily chart, we can observe no demand bar on volume below the average, which is a good sign for the further downward movement. There is an also broken upper channel in the background, which is another good sign for potential bearish 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. According to the H4 timeframe, we got supply bars on volume above the average so buying at this stage looks very risky.
Daily pivot Fibonacci points:
Resistance levels:
R1: 1,298.16
R2: 1,299.44
R3: 1,301.50
Support levels:
S1: 1,294.04
S2: 1,292.76
S3: 1,290.70
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 1,285.46 on average volume. Our previous analysis is still active and we got good progress. According to the daily chart, we can observe no demand bar on volume below the average, which is a good sign for the further downward movement. There is an also broken upper channel in the background, which is another good sign for potential bearish 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. According to the H4 timeframe, we got supply bars on volume above the average so buying at this stage looks very risky.
Daily pivot Fibonacci points:
Resistance levels:
R1: 1,298.16
R2: 1,299.44
R3: 1,301.50
Support levels:
S1: 1,294.04
S2: 1,292.76
S3: 1,290.70
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
Related Posts: