Overview:
Since our last analysis, gold has been trading upwards, as we expected. The price tested the level of 1,256.78 on ultra high volume (buying climax) according to the 1H chart. As you can see in the graph, the price respected our support level (1,240.00), and that caused price to start moving upwards. Since we have got buying climax in the background, we may expect downward retracement before bullish continuation. I placed Fibonacci retracement levels and I got Fibonacci retracement 38.2% at the price of 1,250.00 and Fibonacci retracement 61.8% at the price of 1,247.00. Be careful with buying Gold at this stage since price is near the resistance. Watch for buying opportunities after retracement.
Daily pivot Fibonacci points:
Resistance levels:
R1: 1,257.18
R2: 1,261.12
R3: 1,267.50
Support levels:
S1: 1,244.42
S2: 1,240.48
S3: 1,234.10
Trading recommendation: Watch for potential bullish movement after retracement.
