Overview :
Since our last analysis, gold has been trading sidewas around the price of 1,195.00. We are waiting for a larger volume and stronger price action on the market. According to the daily time frame, we can observe weak demand, which is a sign that buying looks risky. We can observe rejection from our Fibonacci retracement 61.8% at the price of 1,208.00, which caused price to start a bearish phase. I have placed Fibonacci expansion to find potential support levels and I got Fibonacci expansion 61.8% at the price of 1,194.00 (currently on the test), Fibonacci expansion 100% at the price of 1,188.00 and Fibonacci expansion 161.8% at the price of 1,177.00. If the price breaks the level of 1,194.00 in a high volume and strong price action, we may see potential testing the level of 1,188.00. Be careful when buying at this stage but watch for buying opportunities after a bearish corrective phase.
Daily pivot Fibonacci points:
Resistance levels:
R1: 1,203.71
R2: 1,204.59
R3: 1,206.00
Support levels:
S1: 1,200.89
S2: 1,200.01
S3: 1,198.60
Trading recommendations: Watch for potential buying opportunities after retracement (buy on the lows).
