Overview :
Since our last analysis, gold has been trading downwards. As we expected, the price has tested the level of $1,195.56 in a high volume. Accoring to the daily time frame we can observe big weakness around our Fibonacci retracement 38.2%. The price rejected from our major Fibonacci retracement 38.2% ($1,205.00). According to the 15-min time frame, we can observe re-testing of a diagonal line. I have placed Fibonacci retracement to find potential support levels. I got Fibonacci retracement 38.2% at the price of $1,190.00. Anyway, If the price breaks the level of 1,220.00, we may see potential testing of the level of $1,244.00.
Daily Fibonacci pivot points:
Resistance levels :
R1: 1,215.81
R2: 1,221.91
R3: 1,231.73
Support levels :
S1: 1,196.21
S2: 1,190.15
S3: 1,180.33
Trading recommendations: Be careful when buying gold at this stage since the price rejected from our Fibonacci retracement 38.2%
