Overview:
Since our last analysis, gold has been trading downwards, the price tested the level of 1,308.46 on average volume. This bearish movement may signal the end of the major bullish corrective phase. We saw decreasing volume on upper leg, which casued the price to start bearish phase. The price rejected from our FR 61.8% (1,324.00), as like we expected. Be careful with buying at this stage since we may see more downward movement. I placed Fibonacci retracement levels to find possible down stations and I got FR 38.2% at the price of 1,297.00 and FR 61.8% at the price of 1,274.00. I also placed Fibonacci expansion levels to find the very first down stations and I got FE 61.8% at the price of 1,313.00 (reached) and FE 100% at the price of 1,306.00. Our next down station is FE 100% at the price of 1,306.00. My advice is to watch for potential bearish movement.
Daily pivot Fibonacci points:
Resistance levels:
R1: 1,319.59
R2: 1,322.75
R3: 1,327.87
Support levels:
S1: 1,309.35
S2: 1,306.19
S3: 1,301.07
Trading recommendation: Trading the metal, be careful with buying since we got decreasing volume on upper leg and Gold is near high new ground.
