Overview:
Since our last analysis, gold has been trading downward, the price tested level of 1,235.33 on volume above the average.We can alsoВ observe that supply has entereted the market at 1,253.00 (selling climax) which caused price to start bearish movement.If the price breaks the level of 1,256.00 (FE 61.8) on high volume, we may see testing next upper stations at 1,279.00 and 1,295.00.Do not forget, gold is in bearish trend and we are now in bullish corrective phase.We may see testing levels around 1,232.00-1,227..00, before another bullish movement. Selling gold at this stage looks risky since gold is in progress of bullish corrective phase if the price breaks 1,256.00 . Watch for buying opportunities above the level of 1,256.00.
Daily pivot Fibonacci points:
Resistance levels:
R1: 1,251.43
R2: 1,254.61
R3: 1,259.77
Support levels:
S1: 1,241.11
S2: 1,237.93
S3: 1,232.77
Trading recommendation: Trading the metal, be careful with selling gold and try to catch bullish corrective phase.
