Overview:
Since our last analysis, gold has been trading downwards. As we expected, the price tested the level of 1,250.58 on higher volume. I have placed Fibonacci expansion levels from the most recent swings and I got FE 61.8 % at price 1,251.00 (currently on the test) and FE 100 % at price 1,240.00. We can observe a rejection from our sub-major FR 61.8% and buying climax, which caused price to start downward movement. If the price breaks our FE 61.8 % (1,251.00) on high volume, we may see the testing of next down station around the prices of 1,243 (Major FR 38.2 %)- 1.2400 (FE 100 %). Buying gold looks risky since we are in short-and mid-term downtrend, and we also got finished the ABCD bullish corrective phase.
Daily pivot Fibonacci points:
Resistance levels:
R1: 1,269.91
R2: 1,274.49
R3: 1,281.90
Support levels:
S1: 1,255.09
S2: 1,250.51
S3: 1,243.10
Trading recommendation: Trading the metal, be careful when buying and try to catch the bearish continuation phase.
