Overview:
Since our last analysis, gold has been trading downwards. Just like we expected, the price tested the level of 1,291.55 in a volume just above average. According to the daily time frame, we can observe supply in a volume below average. We got successful rejection from our Fibonacci retracement 61.8%, which is a sign that buying looks risky. My advice is to watch for selling opportunities after retracement. I have placed Fibonacci expansion from most recent ABC swings and I got Fibonacci expansion 61.8% at the price of 1,284.00 (almost got tested). Our low level swing at the price of 1,291.00 is on the test, so selling at this stage looks risky. Anyway, if the price breaks the level of 1,291.00, we may see possible testing the level of 1,284.00 (Fibonacci expansion 61.8%).
Daily pivot Fibonacci points:
Resistance levels:
R1: 1,301.81
R2: 1,303.93
R3: 1,307.37
Support levels:
S1: 1,294.93
S2: 1,292.81
S3: 1,289.37
Trading recommendations: Selling Gold looks risky since our support level is now on the test.
