Overview:
Since our last analysis, Gold has been trading downwards, as we expected, the price rejected from the level of 1,218.76 (FE 100 %) on ultra high volume and tested the level of 1,200.49 on high volume. According to the 1H chart, Gold finished bullish corrective phase. We can observe that strong supply on very high volume has entered the market at 1,218.00 so the level of 1,218.46 may be our point d (abcd corrective). We can also see decreasing volume on upper legs which is good sign for further bearish continuation.We may see testing of previous swing lows at the price of 1,192.00 and 1,187.00. Anyway, if the price breaks the area of 1,218.76 on high volume, we may see the testing of FE 161.8% at 1,225.90, before we start with bearish continuation. Do not forget, Gold is in bearish trend so buying looks very risky. Watch for selling opportunities.
Daily pivot Fibonacci points:
Resistance levels:
R1: 1,214.98
R2: 1,215.66
R3: 1,216.77
Support levels:
S1: 1,212.76
S2: 1,212.08
S3: 1,210.97
Trading recommendation: Trading the metal, be careful with short-term buying and look for selling opportunities.
