Overview:
Since our last analysis, gold has been trading downwards, the price tested the level of 1,285.87 on ultra high volume (selling climax). According to the daily chart (Tuesday bar), we can observe strong supply on ultra high volume, 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. Since we've got selling climax in the background, selling at this stage looks risky, so watch for retracement if you plan to build sell positions. According to current downward leg, we've got Fibonacci retracement 38.2% at the price of 1,303.00 and Fibonacci retracement 61.8% at the price of 1,313.00. 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.
Daily pivot Fibonacci points:
Resistance levels:
R1: 1,320.72
R2: 1,329.52
R3: 1,343.77
Support levels:
S1: 1,292.22
S2: 1,283.42
S3: 1,269.17
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.
