Overview:
Since our last analysis, Gold has been trading in downwards movement, as we expected, price tested level 1,269.90 on ultra high volume (4H). I placed Fibonacci expansion levels to find the potential end of up corrective phase. Thus, I got FE 100% at price 1,295.00 and if that level holds, we may see a down continuation. We are still likely to see testing of the weekly FE level 161.8% at price 1,151.00. I saw supply bar on volume just above the average, according to the daily chart which is the sign that we got supply on the market. The current situation on (4H) is that we got ultra high volume down bar. That is the sign that Gold may continue its down movement. If the price does not reject from our FE 100% (1,295.00), we may see testing of previous SR zone (blue shape) at price 1,320.00 and then continuation with down movement. Since we are in the short-term downtrend and observe few tests of FE 100 % (4H chart) with supply on the daily chart, buying Gold looks very risky and I advise you to watch for selling opportunities.
Daily pivot Fibonacci points:
Resistance levels:
R1: 1,293.99
R2 : 1,311.72
R3 : 1,323.99
Support levels:
S1 : 1,263.99
S2 : 1,251.72
S3 : 1,233.99
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.
