Overview :
Since our last analysis gold has been trading downwards. The price has tested the level of 1,201.42 in an ultra high volume (selling climax). According to the H4 time frame, we can observe supply in an ultra high volume (selling climax) in the background, which is a sign that selling gold at this stage looks risky. We are still waiting for larger activity on the market. I have placed Fibonacci retracement according to the low point at the price of 1,197.43 and got Fibonacci retracement 38.2% at the price of 1,240.00 and Fibonacci retracement 61.8% at the price of 1,265.00. My advice is to watch for potential buying opportunities on the lows (buy on the dips). Major support is still around the price of 1,200.00.
Daily Fibonacci pivot points:
Resistance levels :
R1: 1,218.66
R2: 1,222.84
R3: 1,229.60
Support levels :
S1: 1,205.14
S2: 1,200.96
S3: 1,194.20
Trading recommendations: Watch for potential buying opportunities after retracement (buy on the dips).
