Overview:
Since our last analysis, gold has been trading sideways around the price of 1,253.00. We are waiting for a larger volume and higher activity on the market. 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: 1,255.96
R2: 1,258.50
R3: 1,262.63
Support levels:
S1: 1,247.70
S2: 1,245.16
S3: 1,241.03
Trading recommendations: Selling at this stage looks risky since our Fibonacci expansion 61.8% is on the test. Watch for selling opportunities only after correction.
