Overview:
Since our last analysis, gold has been trading downwards, the price tested the level of 1,301.13 on ultra high volume (selling climax). According to the daily chart (Monday bar), we can observe weak demand on volume just above the average, which caused price to start moving downwards. 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. According to the 4H timeframe, we can observe that strong supply on very high volume entered the market, which is a sign that we may expect further bearish movement. My advice is to watch for selling opportunities after retracement.
Daily pivot Fibonacci points:
Resistance levels:
R1: 1,330.10
R2: 1,333.00
R3: 1,337.70
Support levels:
S1: 1,320.70
S2: 1,317.80
S3: 1,313.10
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.
