Overview:
Since our last analysis, gold has been trading upwards, as we expected, the price tested the level of 1,374.98 high volume (buying climax). Since the gold has broke our major resistance level at the price of 1,355.00, we may expect testing the level of 1,395.00-1,401.00 (Fibonacci levels). According to the daily chart, we can observe buying climax on the high new ground, which is sign that buying at this stage looks very risky. We may see possible bearish correction, before larger bullish movement. My advice is to watch for buying opportunities on the dips. I have placed Fibonacci retracement to find potential target level if the price starts with bearish correction and I got Fibonacci retracement 38.2% at the price of 1,357.00 according to the current swing high.
Daily pivot Fibonacci points:
Resistance levels:
R1: 1,370.91
R2: 1,376.93
R3: 1,386.67
Support levels:
S1: 1,351.43
S2: 1,345.41
S3: 1,335.67
Trading recommendation: Trading the metal, be careful with buying at this stage since we may see bearish correction before any larger upward movement.
