Overview
Since our last analysis, gold has been trading downwards, as we expected, the price tested the level of 1,292.30 on volume below the average according to the daily chart. We are still waiting for a larger movement on higher volume. As we already posted in the previous analysis, we got submajor Fibonacci retracement 61.8% at the price of 1,307.00 and that level held successfully. We can observe supply on volume above the average according to the 1H timeframe, which is a sign that buying at this stage looks risky. There is also an buying climax in the background at the price of 1,298.00. Support levels are previous swing lows at the price of 1,277.00 and 1,267.00. Anyway, if the price breaks the level of 1,307.00 on higher volume, we may see testing the level of 1,315.00 (major Fibonacci retrace,emt 38.2%). My advice is to watch for selling opportunities after retracement.
Daily pivot Fibonacci points:
Resistance levels:
R1: 1,300.38
R2: 1,303.88
R3: 1,309.53
Support levels:
S1: 1,289.08
S2: 1,285.58
S3: 1,279.93
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 near term bullish corrective phase.
