Overview
Since our last analysis, gold has been trading downwards, as we expected, the price tested the level of 1,277.11 on volume below the average according to the daily chart. 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 weak demand on volume below the average according to the 4H timeframe, which is a sign that buying at this stage looks risky. Our first support level at the price of 1,277.00 got tested and if the price breaks the level of 1,277.00 on higher volume, we may see testing the level of 1,267.00 (previous swing low). 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 retracement 38.2%). My advice is to watch for selling opportunities after retracement.
Daily pivot Fibonacci points:
Resistance levels:
R1: 1,290.19
R2: 1,293.65
R3: 1,299.27
Support levels:
S1: 1,278.95
S2: 1,275.49
S3: 1,269.87
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.
