Overview:
Since our last analysis, the gold has been trading downwards, the price tested the level of 1,350.56 on volume above the average. According to the daily chart, we can observe that strong supply entered the market on very high volume (selling climax). We can also observe the testing of our Fibonacci retracement 61.8% at the price of 1,352.40. Gold is in progress of bearish corrective phase and I've placed Fibonacci Retracement to find potential down station if the price breaks the level of 1,352.40 and I got submajor FR 61.8% at the price of 1,340.00. To confirm further bearish correction and downward movement, the price needs to break the level of 1,350.00 on higher volume. Watch for selling opportunities after retracements.
Daily pivot Fibonacci points:
Resistance levels:
R1: 1,382.78
R2: 1,388.98
R3: 1,399.03
Support levels:
S1: 1,362.68
S2: 1,356.48
S3: 1,346.43
Trading recommendation: Trading the metal, be careful with buying at this stage since Gold is in progress of bearish corrective phase
