Overview:
Since our last analysis, gold has been trading downwards, as we expected, the price tested the level of 1,269.85 on high volume. If we take a look at 4H timeframe, we can observe that support level at the price of 1,277.00 got broken. We can also observe weak demand in the background, which caused price to start moving downwards. According to the short-term prospective, gold is in progress of major bearish corrective phase and I've placed Fibonacci retracement to find the first down station. I got Fibonacci retracement 61.8% at the price of 1,263.00. My advice is to watch for selling opportunities after retracement.
Daily pivot Fibonacci points:
Resistance levels:
R1: 1,287.79
R2: 1,289.67
R3: 1,292.73
Support levels:
S1: 1,281.67
S2: 1,279.79
S3: 1276.73
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.
