Since our last analysis, gold has been trading downward. The price tested the level of $1,169.74. I am waiting for a clear direction and stong volume. According to the daily time frame, we can observe supply in a volume below the average (weak supply), which is a sign that selling at this stage looks risky. Our Fibonacci retracement 61.8% (support) at $1,174.00 was held successfully. Major resistance is seen around the level of $1,220.00. The short-term trend is neutral. According to the H4 time frame, we can observe supply in a high volume but with very weak price action (hidden buying). I placed Fibonacci expansion to find potential resistance levels and got Fibonacci expansion 61.8% at $1,220.00, Fibonacci expansion 100% at $1,250.00, and Fibonacci expansion 161.8% at $1,300.00. Anyway, if the price breaks the level of $1,175.00 in a high volume, we may see potential testing of the level of $1,148.00 (swing low like support).
Daily Fibonacci pivot points:
Resistance levels:
R1: 1,178.80
R2: 1,179.35
R3: 1,180.90
Support levels:
S1: 1,177.00
S2: 1,176.20
S3: 1,175.00
Trading recommendations: I am neutral about gold. Anyway, selling looks risky around the price of $1,174.00 (Fibonacci retracement 61.8%). Watch for potential buying opportunities if you see a clear sign of strength.
The material has been provided by InstaForex Company – www.instaforex.com
Overview:
Since our last analysis, gold has been trading downward. The price tested the level of $1,169.74. I am waiting for a clear direction and stong volume. According to the daily time frame, we can observe supply in a volume below the average (weak supply), which is a sign that selling at this stage looks risky. Our Fibonacci retracement 61.8% (support) at $1,174.00 was held successfully. Major resistance is seen around the level of $1,220.00. The short-term trend is neutral. According to the H4 time frame, we can observe supply in a high volume but with very weak price action (hidden buying). I placed Fibonacci expansion to find potential resistance levels and got Fibonacci expansion 61.8% at $1,220.00, Fibonacci expansion 100% at $1,250.00, and Fibonacci expansion 161.8% at $1,300.00. Anyway, if the price breaks the level of $1,175.00 in a high volume, we may see potential testing of the level of $1,148.00 (swing low like support).
Daily Fibonacci pivot points:
Resistance levels:
R1: 1,178.80
R2: 1,179.35
R3: 1,180.90
Support levels:
S1: 1,177.00
S2: 1,176.20
S3: 1,175.00
Trading recommendations: I am neutral about gold. Anyway, selling looks risky around the price of $1,174.00 (Fibonacci retracement 61.8%). Watch for potential buying opportunities if you see a clear sign of strength.
The material has been provided by InstaForex Company – www.instaforex.com
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