Overview:
Since our last analysis, gold has been trading downwards. As we expected, the price tested the level of 1,251.23 in a volume above average. The price rejected from our Fibonacci retracement 38.2% at the level of 1,272.00, and that is the reason why we saw bearish continuation. Our major Fibonacci expansion 61.8%% is on the test. If the price breaks the level of 1,251.00 in a high volume, we may see more downward movement and potential testing the level of 1,218.00 (Fibonacci expansion 161.8%). According to the 4H time frame, we can observe weak demand in the background, which is a sign that buying looks risky.
Daily pivot Fibonacci points:
Resistance levels:
R1: 1,267.50
R2: 1,272.34
R3: 1,280.17
Support levels:
S1: 1,251.84
S2: 1,247.00
S3: 1,239.17
Trading recommendations: Buying at this stage looks risky since the price has rejected from our Fibonacci retracement 38.2%.
