Overview:
Since our last analysis, gold has been trading upwards, as we expected, the price reached our major target level at 1,279.10 on lower volume. We can observe rejection from our FR 38.2% and volume leveling off at 1,279.00 which is sign that buying at this stage looks risky. Since the price has met our FR 38.2%, there is a chance that Gold has finished bullish corrective phase (ABCD) and that we may see bearish continuation phase. Anyway,to confirm that, we need strong supply on higher volume on the market. In case that the price breaks the level of 1,281.00 on high volume, we may see testing 1,295.00-1,300.00 before bearish continution phase. Stations for potential downward movement are levels of 1.260.00 (FR 38.2 %) and 1.250.00 (FR 61.8 %).
Daily pivot Fibonacci points:
Resistance levels:
R1: 1,278.43
R2: 1,280.53
R3: 1,283.93
Support levels:
S1: 1,271.63
S2: 1,269.53
S3: 1,266.13
Trading recommendation: Trading the metal, be careful with buying since we may end bullish corrective phase and start bearish continuation phase.
