Overview:
Since our last analysis, Gold has been trading in downwards movement, like we expected, price tested our FE 161.8% (1,347.87) and rejected down to level 1,308.60. I placed Fibonacci expansion levels to find the potential end of up corrective phase. 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 above the average, according to the daily chart which is the sign that we may see down trend continuation. The current situation on (4H) is that we rejected from FE 161.8% at price 1,347.87 (SR zone) on ultra high volume. That is the sign that Gold may continue its down movement. Since we are in the short-term downtrend and observe weak demand 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: 1,338.57
R2 : 1,346.43
R3 : 1,359.15
Support levels:
S1 : 1,313.13
S2 : 1,305.27
S3 : 1,292.55
Trading recommendation: Operating with metal, be careful with short-term buying and look for selling opportunities. My recommendation for down short-term target is 1,151.00.
