Overview:
Since our last analysis, gold has been trading downwards. As we expected, the price tested the level of 1,260.98 in a very high volume according to the 4H time frame. The price almost tested our Fibonacci expansion 100% at the level of 1,258.00, so be careful when selling at this stage. If the price breaks the level of 1,258.00, we may see more downward movement. Otherwise, if we see larger bullish reaction from our support, Gold may start a bullish corrective phase.
Daily pivot Fibonacci points:
Resistance levels:
R1: 1,283.62
R2: 1,290.18
R3: 1,300.80
Support levels:
S1: 1,262.38
S2: 1,255.82
S3: 1,245.20
Trading recommendations: Selling gold at this stage looks risky since the price is near our support level.
