Overview:
Since our last analysis, gold has been trading downwards, the price tested the level of 1,281.46 on ultra high volume (selling climax) according to the 1H timeframe. According to the daily timeframe, we have got weak demand on low volume which caused price to start downward movement. Anyway we have got strong bullish reactions in the background from our support at 1,277.00 on higher volume, which is a sign that short-term selling looks very risky. According to the 1h timeframe, we can observe selling climax near the low and just after that no selling pressure on low volume, which is a sign that we may see possible bullish reaction. We can conclude that the price of 1,305.00 (swing low) is strong resistance and the level of 1,277.00-1,269.00 is strong support. Be careful with selling since the price is near support.
Daily pivot Fibonacci points:
Resistance levels:
R1: 1,293.92
R2: 1,294.62
R3: 1,295.77
Support levels:
S1: 1,291.62
S2: 1,290.92
S3: 1,289.77
Trading recommendation: Trading the metal, be careful with short-term selling since the price is near support.
