Recently, the Gold has been trading downwards. As I expected, the price tested the level of $1,271.95. According to the 4H time frame, I found a fake breakout of the downward channel in the background, which is a sign that buying looks risky. There is a successful breakout of Friday's low at the price of $1,277.65, which is another sign of weakness. Sellers are in control and my advice is to watch for potential selling opportunities. The downward target is set at the price of $1,245.20 (Fibonacci expansion 100%).
Resistance levels:
R1: $1,278.50
R2: $1,280.00
R3: $1,282.45
Support levels:
S1: $1,274.80
S2: $1,272.53
S3: $1,271.00
Trading recommendations for today: watch for potential selling opportunities.
