Overview:
Since our last analysis, gold has been trading upwards. The price tested and rejected from the level of 1,274.00 on ultra high volume. If the price breaks an area of 1,238.00, we may expect bearish continuation phase and possible testing of the level 1,222.00. We can observe large buying climax at the price of 1,274.00 and also strong supply at the price ща 1,265.00 which is a sign that buying gold at this stage looks risky. Anyway, if the price breaks the level of 1,275.00 on higher volume, we may see more upward movements and extended major bullish corrective phase.Buying gold looks risky since we are in short- and mid-term downtrend, and we can observe the finish of the major ABCD bullish corrective phase.
Daily pivot Fibonacci points:
Resistance levels:
R1: 1,270.09
R2: 1,275.21
R3: 1,283.50
Support levels:
S1: 1,253.51
S2: 1,248.39
S3: 1,240.10
Trading recommendation: Trading the metal, be careful with buying and try to catch the bearish continuation phase if the price breaks the area of 1.238.00.
