Overview:
Since our last analysis, gold has been trading downwards, the price tested the level of 1,260.61 on ultra high volume (selling climax) according to the Daily chart. Since the price didn't break our resisntace level at 1,305.00, we saw strong downward pressure. Anyway, selling still looks very risky since we are on the support level and we have got selling climax (ultra high volume) on the low ground. I have placed Fibonacci retracement levels to find potential end of bearish corrective phase and I got Fibonacci retracement 61.8% at the price of 1,262.00 (on the test) and Fibonacci expansion 61.8% at the price of 1,259.50. A short-term resistnace level is at the price of 1,276.00 (Fibonacci retracement 61.8%).
Daily pivot Fibonacci points:
Resistance levels:
R1: 1,286.56
R2: 1,293.94
R3: 1,305.90
Support levels:
S1: 1,262.64
S2: 1,255.26
S3: 1,243.30
Trading recommendation: Trading the metal, be careful with short-term selling since the price is near support.
