Since our last analysis Gold has been trading downward moves as we expected, we almost got our weekly short-term target level FE 161.8% at price 1,151.00. Price tested level 1,180.00 and from that point we entered corrective up phase. I placed Fibonacci expansion levels to find potential end of up corrective phase. Thus, I got FE 261.8% at price 1,269.00 and if that level hold we may see down continuation. We may still expect testing of weekly FE level 161.8% at price 1,151.00 .I saw no demand bar according to the daily chart (Monday bar) on volume just below the average which is a sign that we have weak demand on the market. Current situation on (1H) chart is that we are testing FE 261.8% (1.,269.00) and that there is a large buying climax (ultra high volume bars). Since we are in the short term downtrend and observe a buying climax (1H chart) with no demand bar on a daily chart, buying this pair looks very risky. My advice is to watch for selling opportunities after up corrections.
Daily pivot Fibonacci points:
Resistance levels:
R1 : 1,259.67
R2 : 1,268.19
R3 : 1,281.98
Support levels:
S1 : 1,232.09
S2 : 1,223.57
S3 : 1,209.78
Trading recommendation: Operating with the metal, be careful with short-term buying and look for selling opportunities. My recommendation for down short-term target is 1,151.00.
The material has been provided by InstaForex Company – www.instaforex.com
Overview:
Since our last analysis Gold has been trading downward moves as we expected, we almost got our weekly short-term target level FE 161.8% at price 1,151.00. Price tested level 1,180.00 and from that point we entered corrective up phase. I placed Fibonacci expansion levels to find potential end of up corrective phase. Thus, I got FE 261.8% at price 1,269.00 and if that level hold we may see down continuation. We may still expect testing of weekly FE level 161.8% at price 1,151.00 .I saw no demand bar according to the daily chart (Monday bar) on volume just below the average which is a sign that we have weak demand on the market. Current situation on (1H) chart is that we are testing FE 261.8% (1.,269.00) and that there is a large buying climax (ultra high volume bars). Since we are in the short term downtrend and observe a buying climax (1H chart) with no demand bar on a daily chart, buying this pair looks very risky. My advice is to watch for selling opportunities after up corrections.
Daily pivot Fibonacci points:
Resistance levels:
R1 : 1,259.67
R2 : 1,268.19
R3 : 1,281.98
Support levels:
S1 : 1,232.09
S2 : 1,223.57
S3 : 1,209.78
Trading recommendation: Operating with the metal, be careful with short-term buying and look for selling opportunities. My recommendation for down short-term target is 1,151.00.
The material has been provided by InstaForex Company – www.instaforex.com
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