Overview:
Since our last analysis, gold has been trading downwards, as we expected, the price tested and rejected from the level of 1,268.35 on high volume (almost met our down station at 1,262.00). If we take a look at 4H timeframe, we can observe that support level at the price of 1,277.00 held successfully and that caused price to start another bullish correction. We can observe that strong demand has entered the market and that selling at this stage looks risky. Gold is in progress of bullish corrective phase and I've placed Fibonacci retracement to find potential end of bullish corrective phase. I got major Fibonacci retracement 38.2% at the price of 1,315.00 and Fibonacci retracement 61.8% at the price of 1,344.00. There is an also submajor Fibonacci retracement 61,8% at the price of 1.307.00. My advice is to watch for selling opportunities after bullish corrective phase.
Daily pivot Fibonacci points:
Resistance levels:
R1: 1,297.52
R2: 1,304.52
R3: 1,315.87
Support levels:
S1: 1,274.82
S2: 1,267.82
S3: 1,256.47
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 bullish corrective phase.
