Overview:
Since our last analysis, gold has been trading downwards, the price rejected from our resistance level at the level of 1,305.00 and tested the level of 1,285.76 on volume above the average according to the 4h timeframe. As you can see in the chart, our Fibonacci retracement 61.8% at 1,290.00 is again on the test so we need to wait to see what will happen. 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. I placed Fibonacci expansion levels to find potential end of current bearish corrective phase and i got Fibonacci expansion 100% at the price of 1,284.00. We can conclude that the price of 1,305.00 (swing low) is strong resistance and just if the price breaks that level on hgiher volume we may see further bullish continuation. Be careful with selling since we are near major suppport zone.
Daily pivot Fibonacci points:
Resistance levels:
R1: 1,302.34
R2: 1,305.62
R3: 1,310.93
Support levels:
S1: 1,291.72
S2: 1,288.44
S3: 1,283.13
Trading recommendation: Trading the metal, be careful with short-term selling since price is near strong support zone
