Overview:
Since our last analysis, gold has been trading downwards, as we expected, the price tested the level of 1,281.75 on volume above the average. If we take a look at 4H timeframe, we can observe supply bar on volume above the average and that is a good sign for potential downward movement. Price is testing previous swing low (1,286.00). 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. Our Fibonacci retracement 38.2% at the price of 1,303.00 held successfully and that caused price to start bearish movement. If the price breaks the level of 1,279.00 on a higher volume, we may see it testing the level of 1,263.00. My advice is to watch for selling opportunities after retracement.
Daily pivot Fibonacci points:
Resistance levels:
R1: 1,294.40
R2: 1,297.20
R3: 1,299.00
Support levels:
S1: 1,289.80
S2: 1,288.00
S3: 1,285.20
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.
