Overview:
SSince our last analysis, gold has been trading downwards, the price tested again level of 1,223.00 on lower volume (volume leveling off). The price tested again Fibonacci Retracement level 38.2% at 1,223.00 (previous swing high). We can also observe selling climax at 1,226.00, which is a sign that selling at this stage looks risky. I placed Fibonacci levels to find potential upper station and I got FE 61.8% at 1,256.00 and FR 38.2% at 1,279.00-1,295.00. In case the price breaks the area of 1,216.00, we may see testing of FR 61.8% at price 1,207.50. Do not forget, gold is in bearish trend and we are now in bullish corrective phase. Selling gold at this stage looks risky since gold is in progress of bullish corrective phase.
Daily pivot Fibonacci points:
Resistance levels:
R1: 1,240.25
R2: 1,245.05
R3: 1,252.80
Support levels:
S1: 1,224.75
S2: 1,219.95
S3: 1,212.20
Trading recommendation: Trading the metal, be careful with selling gold and try to catch bullish corrective phase.
