Overview:
Since our last analysis, Gold has been trading downward movement. Just as we expected, the price tested the level of 1,217.46 on high volume, we expect more bearish continuation. In the daily chart, we can observe supply on volume above the average and rejection of the previous swing low at 1,252.00, which means that gold may continue bearish movement. 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. The current situation in (4H) is that we have got increasing in volume on downward leg and the broken channel, which is the sign that gold may continue the 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.
Daily pivot Fibonacci points:
Resistance levels:
R1: 1,241.25
R2: 1,248.61
R3: 1,260.53
Support levels:
S1: 1,217.41
S2: 1,210.05
S3: 1,198.13
Trading recommendation: trading the metal, be careful with short-term buying and look for selling opportunities. My recommendation for a downward short-term target is to place it at 1,151.00.
