Overview:
Since our last analysis, gold has been trading upwards, the price tested the level of 1,294.35 on average volume, we are still waiting larger movement. Our previous analysis is still active and we got good progress. According to the daily chart, we can observe weak demand bar on volume below the average. There is an also broken upper channel in the background, which is another good sign for potential healthy bearish movement. Gold tested and rejected from our submajor Fibonacci retracement 38.2% at the price of 1,293.00 According to the short term prospectiv Gold is in progress of bearish corrective phase and I've placed Fibonacci Retracement to find the first down station. I got Fibonacci Retracement 61.8% at the price of 1,263.00. If the price breaks the level of 1,279.00 on higher volume, we may see testing the level of 1,263.00, otherwise Gold may start larger bullish correction. The price is currently testing the level of 1,285.00 (submajor Fibonacci retracement 38.2%). If the Gold breaks the level of 1,295.00, next resistance may be at the price of 1,302.00 (Fibonacci retracement 61.8%). Be careful with short-term buying and watch for selling opportunities after retracements.
Daily pivot Fibonacci points:
Resistance levels:
R1: 1,294.24
R2: 1,297.52
R3: 1,302.83
Support levels:
S1: 1,283.62
S2: 1,280.34
S3: 1,275.03
Trading recommendation: Trading the metal, be careful with buying at this stage since gold is in progress of bearish corrective phase. Watch for selling opportunities after retracement.
