Overview:
Since our last analysis, gold has been trading downwards. The price tested the level of 1,315.32 on high volume according to the 4H timeframe. According to the daily timeframe, we can observe weak demand (friday bar), which caused the price to start downward movement. I have placed Fibonacci expansion levels to find a major resistance level. Besides, I got Fiboancci expansion 61.8% at the price of 1,368.00. We are now in a bearish corrective phase, so be careful with buying. The support level is the level around the price of 1,305.00 (Fibonacci retracement 38.2%). According to the 4H timeframe, we can observe strong supply in the volume above average.
Daily pivot Fibonacci points:
Resistance levels:
R1: 1,340.46
R2: 1,340.80
R3: 1,341.33
Support levels:
S1: 1,339.40
S2: 1,339.06
S3: 1,338.53
Trading recommendation: Be careful with buying Gold since it is in a bearish corrective phase.
