Since our last analysis Gold has been trading in downward moves like we expected, tested level 1,284.00 and reached our intraday target level at price 1,356.00 and our first short-term target at level 1.323.00. We are now heading to test FE 100% at price 1,221.00 (second short-term target), according to the daily chart. I saw decreasing volume in the previous move up which is a good sign of weakness for future up. First up leg got 326,000 total volume and if you compare it with the second up leg where we got 212,000 of total volume, you will find 35% decreasing on the second leg which is a good sign that we may see future down. I also calculated previous down leg and I got 368,000 of total volume which is a strong sign that corrective phase after huge selling climax has ended. On the daily chart we can also see supply bar which is strong confirmation that we have bearish market. Current situation on (1H) chart is that we got massive bearish volume and strong supply on the market. In the short term, buying of this pair looks very risky so I advise you to watch for selling opportunities.
Daily pivot Fibonacci points:
Resistance levels:
R1 : 1,367.38
R2 : 1,375.26
R3 : 1,388.02
Support levels:
S1 : 1,341.86
S2 : 1,333.98
S3 : 1,321.22
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 1,221.00.
The material has been provided by InstaForex Company – www.instaforex.com
Overview:
Since our last analysis Gold has been trading in downward moves like we expected, tested level 1,284.00 and reached our intraday target level at price 1,356.00 and our first short-term target at level 1.323.00. We are now heading to test FE 100% at price 1,221.00 (second short-term target), according to the daily chart. I saw decreasing volume in the previous move up which is a good sign of weakness for future up. First up leg got 326,000 total volume and if you compare it with the second up leg where we got 212,000 of total volume, you will find 35% decreasing on the second leg which is a good sign that we may see future down. I also calculated previous down leg and I got 368,000 of total volume which is a strong sign that corrective phase after huge selling climax has ended. On the daily chart we can also see supply bar which is strong confirmation that we have bearish market. Current situation on (1H) chart is that we got massive bearish volume and strong supply on the market. In the short term, buying of this pair looks very risky so I advise you to watch for selling opportunities.
Daily pivot Fibonacci points:
Resistance levels:
R1 : 1,367.38
R2 : 1,375.26
R3 : 1,388.02
Support levels:
S1 : 1,341.86
S2 : 1,333.98
S3 : 1,321.22
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 1,221.00.
The material has been provided by InstaForex Company – www.instaforex.com
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