Overview :
Since our last analysis gold has been trading downwards. The price has tested the level of 1,275.70 in an average volume. According to the daily time frame, we can observe weak supply in a volume below the average which is a sign that selling gold at this stage looks risky. According to the H1 time frame, we can observe potential end of the bearish corrective phase (abcd). I have placed Fibonacci expansion levels to find potential end of bearish corrective phase and got Fibonacci expansion 161.8% at the price of 1,275.00 (held successfully). Be careful when selling gold and watch for potential buying opportunities on the lows.
Daily Fibonacci pivot points :
Resistance levels :
R1: 1,299.07
R2: 1,300.84
R3: 1,303.70
Support levels :
S1: 1,293.84
S2: 1,291.57
S3: 1,288.77
Trading recommendations: Watch for potential buying opportunities after retracement (buy on the dips).
