Overview:
Since our last analysis, gold has been trading downwards, as we expected, the price tested the level of 1,242.90 on high volume (selling climax) according to M30 timeframe.We can also observe selling climax and testing of our FR 61.8 % at 1,244.00. Since the price has broken the level of 1,254.00, we may expect testing of previous swing high at 1,260.00 and possible testing of major FE 100 % at 1,279.00-1,295.00. Do not forget, gold is in bearish trend and we are now in bullish corrective phase. If our submajor FR 61.8 % at 1,244.00 can not hold,we may see testing of major FR 38.2 % around the price of 1,233.00-1,230.00, before another bullish movement. Anyway, selling gold at this stage looks risky since gold is in progress of bullish corrective phase, and we saw demand on the high volume in the background. Watch for buying opportunities.
Daily pivot Fibonacci points:
Resistance levels:
R1: 1,257.20
R2: 1,258.34
R3: 1,260.17
Support levels:
S1: 1,253.54
S2: 1,252.40
S3: 1,250.57
Trading recommendation: Trading the metal, be careful with selling gold and try to catch bullish corrective phase.
