Overview:
Since our last analysis, gold has been trading sideways, around the price of 1,294.00, we are waiting for larger activity. As you can see in the chart, our Fibonacci retracement 61.8% at 1,290.00 held successfully, and that caused price to start upward movement and test the level of 1,305.64. According to the Daily timeframe, we can observe strong bullish reactions in the background from our support 1,277.00 on higher volume, which is a sign that short-term selling looks very risky. According to H4 timeframe we can see weak supply, which is another sign that selling at this stage looks risky. I found potential resistance level at the price of 1,305.00 (swing low). If the price breaks the level of 1,305.00 on higher volume, we may see possible tetsting the level of 1,315.00 (previous swing high). Be careful with selling and watch for buying opportunities.
Daily pivot Fibonacci points:
Resistance levels:
R1: 1,304.72
R2: 1,308.54
R3: 1,314.73
Support levels:
S1: 1,292.34
S2: 1,288.52
S3: 1,282.33
Trading recommendation: Trading the metal, be careful with short-term selling since our major support level at the price of 1,277.00 held successfully.
