Overview:
Since our last analysis, gold has been trading sideways, around the price of 1,300.00, we are still waiting for a larger movement. According to the daily chart (Wednesday bar), we can observe doji bar on volume just above the average, which is sign for indecision. Anyway, if we take a look at 4H timeframe, we can observe weak demand around our Fibonacci retracement 38.2%, so be careful with buying at this stage. 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. According to current downward leg, we've got Fibonacci retracement 38.2% at the price of 1,303.00 (successfully tested) 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: 1,306.57
R2: 1,309.69
R3: 1,314.73
Support levels:
S1: 1,296.49
S2: 1,293.37
S3: 1,288.33
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.
