Overview:
Since our last analysis, gold has been trading upwards, as we expected, the price tested the level of 1,321.31 on ultra high volume (buying climax). As you can see in the graph, the price has broke our Fibonacci expansion 100% at the price of 1,305.00, so we may see possible testing the level of 1,334.00 (Fibonacci expansion 161.8%). According to the 4H timeframe, we can observe demand on ultra high volume (buying climax), which is a sign that buying at this stage looks risky. Be careful with buying since we may see potential bearish correction.
Daily pivot Fibonacci points:
Resistance levels:
R1: 1,321.60
R2: 1,332.40
R3: 1,349.90
Support levels:
S1: 1,288.60
S2: 1,275.80
S3: 1,258.30
Trading recommendation: Be careful with buying at this stage since we have got buying climax in the background.
