Overview:
Since our last analysis, gold has been trading upwards, as we expected, the price tested the level of 1,282.63 on volume above the average. As you can see in the graph, the price rejected successfully from our Fibonacci 61.8% at the price of 1,257.00. I have placed Fibonacci expansion levels to find potential upper station and I have got Fibonacci expansion 61.8% at the price of 1,283.00. According to the 4H timeframe, we can observe demand on high volume, which is a sign that selling looks very risky. If the price breaks the level of 1,287.00, we may see potential testing the level of 1,305.00 (Fibonacci expansion 100%).
Daily pivot Fibonacci points:
Resistance levels:
R1: 1,277.65
R2: 1,280.65
R3: 1,285.50
Support levels:
S1: 1,267.95
S2: 1,264.95
S3: 1,260.10
Trading recommendation: Be careful with selling at this stage since we have got rejecection from Fibonacci level in the background.
