Overview:
Since our last analysis, gold has been trading upwards, the price tested the level of 1,329.65 on average volume. According to the daily chart, we can observe weak supply bar on volume just below the average, which is a sign that we may see more upward movements before any larger supply. Our Fibonacci retracement 38.2% at the price of 1,321.00 is broken, so be careful with selling Gold at this stage. If the daily bar finish above the price of 1,321.00 on high volume, we may see possible testing the level of 1,348.00 (Fibonacci retracement 61.8%). According to the short-term prospective, Gold is in progress of bearish corrective phase and I've placed Fibonacci Retracement to find the first down station. I've 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. My advice is to watch for selling opportunities after retracement. Any larger supply on high volume may confirm further bearish movement.
Daily pivot Fibonacci points:
Resistance levels:
R1: 1,328.61
R2: 1,330.79
R3: 1,334.30
Support levels:
S1: 1,321.59
S2: 1,319.41
S3: 1,315.90
Trading recommendation: Trading the metal, be careful with short-term buying at this stage since gold is in progress of major bearish corrective phase. Watch for selling opportunities after retracement.
