Overview:
Since our last analysis, Gold has been trading sideways, around the level of 1,315.16 on high volume. We are still likely to see it testing the weekly FE level of 161.8% (Weekly third target) at the price of 1,151.00. I saw supply bar on the high volume, according to the daily chart. That is a sign that we got good reaction from the sellers and we may expect further downward movement. The current situation in (4H) is that we got increasing volume on down bars and broken channel, which is the sign that Gold may continue downward movement. Since we are in the short-term downtrend in the daily chart, buying Gold looks very risky and I advise you to watch for selling opportunities after corrections.
Daily pivot Fibonacci points:
Resistance levels:
R1: 1,329.26
R2: 1,334.74
R3: 1,343.60
Support levels:
S1: 1,311.54
S2: 1,306.06
S3: 1,297.20
Trading recommendation: Operating with metal, be careful with short-term buying and look for selling opportunities. My recommendation for a downward short-term target is 1,151.0.
