Gold tested and rejected again from our supply level at 1,400.00 and we are still waiting for the first target level FE 61.8% at price 1,323.00, according to daily chart. We saw decreasing volume in previous up move which is 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 second leg which is good sign that we may see future down. You can also see from the daily graph few test bars on lower volume which is another good sign of weakness in background. I also calculated previous down leg and I got 368,000 of total volume which is strong sign that corrective phase after huge selling climax has ended. Current situation on (1H) chart is that we tested on Tuesday our supply zone at 1,400.00 and made swing high with decreasing in volume of 31% which is the sign that buying gold looks very risky. We placed our Fibonacci Expansion and we got our first potential target at FE 61.8% (1,323.00), according to daily chart. In the short term buying of this metal looks very risky so I advise you to watch for selling opportunities.
Daily pivot Fibonacci points:
Resistance levels:
R1 : 1,396.66
R2 : 1,399.50
R3 : 1,404.08
Support levels:
S1 : 1,387.50
S2 : 1,384.66
S3 : 1,380.08
Trading recommendation: Operating with the metal, be careful with short-term buying and look for selling opportunities. My recommendation for down target is 1,323.00.
The material has been provided by InstaForex Company – www.instaforex.com
Overview:
Gold tested and rejected again from our supply level at 1,400.00 and we are still waiting for the first target level FE 61.8% at price 1,323.00, according to daily chart. We saw decreasing volume in previous up move which is 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 second leg which is good sign that we may see future down. You can also see from the daily graph few test bars on lower volume which is another good sign of weakness in background. I also calculated previous down leg and I got 368,000 of total volume which is strong sign that corrective phase after huge selling climax has ended. Current situation on (1H) chart is that we tested on Tuesday our supply zone at 1,400.00 and made swing high with decreasing in volume of 31% which is the sign that buying gold looks very risky. We placed our Fibonacci Expansion and we got our first potential target at FE 61.8% (1,323.00), according to daily chart. In the short term buying of this metal looks very risky so I advise you to watch for selling opportunities.
Daily pivot Fibonacci points:
Resistance levels:
R1 : 1,396.66
R2 : 1,399.50
R3 : 1,404.08
Support levels:
S1 : 1,387.50
S2 : 1,384.66
S3 : 1,380.08
Trading recommendation: Operating with the metal, be careful with short-term buying and look for selling opportunities. My recommendation for down target is 1,323.00.
The material has been provided by InstaForex Company – www.instaforex.com
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