Overview :
Since our last analysis, gold has been trading sideways around the price of 1,197.00. We are waiting for larger volume and stronger price action. According to the H4 time frame, we can observe supply in a volume below the average. My advice is to watch for potential buying opportunities near the lows. According to the daily time frame, we can observe demand in a volume above the average, which is a sign that selling gold at this stage looks risky. I have placed Fibonacci retracement to find potential resistance level and I got Fibonacci retracement 61.8% at the price of 1,212.00. If the price breaks the level of 1,212.00 in a high volume, we may see a potential testing of the level of 1,237.00.
Daily pivot Fibonacci points:
Resistance levels:
R1: 1,208.88
R2: 1,216.06
R3: 1,227.67
Support levels:
S1: 1,185.66
S2: 1,178.48
S3: 1,166.87
Trading recommendations: Watch for potential buying opportunities after retracement (buy on the lows).
