Overview:
Since our last analysis, gold has been trading upwards. As we expected, the price tested the level of 1,309.27 in a volume above average according to the daily time frame. According to the 4H timeframe, we can observe ultra high volume demand bar (buying climax), so buying at this stage looks riksy. Our Fibonacci expansion 161.8% at the price of 1.309.00 is on the test. We can also observe Fibonacci retracement 38.2% at the price of 1,306.00. Buying in resistance is risky, so we may see bearish reaction. Anyway, if the price breaks the level of 1,309.00 in a higher volume, we may see testing the level of 1,320.00.
Daily pivot Fibonacci points:
Resistance levels:
R1: 1,311.16
R2: 1,316.47
R3: 1,325.07
Support levels:
S1: 1,293.97
S2: 1,288.66
S3: 1,280.07
Trading recommendations: Be careful with buying Gold at this stage since price is on the resistance level (Fibonacci expansion 161.8%).
