Overview:
Since our last analysis, gold has been trading upwards, the price tested the level of 1,352.16 on average volume. Our previous analysis is still active and buying at this stage looks risky. Gold is around our critical resistance area, the price of 1,338.00. According to daily chart, we can observe a neutral bar on volume above the average, which is sign of weak supply. According to 1H chart, we can observe weak demand around the level of 1,350.00. Anyway, if the price breaks the level of 1,355.00 on strong volume, we may see further upward movement and potential bullish movemens. I've placed Fibonacci levels to find potential down stations in case that price starts its corrective phase and I got submajor Fibonacci retracement 38.2% at the price of 1,309.00 and Fibonacci Retracement 61.8% at the price of 1,282.00.
Daily pivot Fibonacci points:
Resistance levels:
R1: 1,344.28
R2: 1,348.22
R3: 1,354.60
Support levels:
S1: 1,331.52
S2: 1,327.58
S3: 1,321.20
Trading recommendation: Trading the metal, be careful with buying since Gold is around its critical area and we are also near the high new ground.
