Overview:
Since our last analysis, gold has been trading sideways, around the price of 1,313.00, so we are waiting for larger movement and larger volume. As you can see in the graph, the price has broken 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 daily timeframe, we can observe demand on ultra high volume (buying climax) in the background, which is a sign that buying at this stage looks risky. Be careful with buying since we may see potential bearish correction. According to the previous price, action we got support level at the price of 1,284.00.
Daily pivot Fibonacci points:
Resistance levels:
R1: 1,315.51
R2: 1,316.05
R3: 1,316.93
Support levels:
S1: 1,313.75
S2: 1,313.21
S3: 1,312.33
Trading recommendation: Be careful with buying at this stage since we have got buying climax in the background.
