Overview:
Since our last analysis, gold has been trading sideways around the price of $1,200.00. According to the daily time frame, we can observe demand in a volume above the average, but the price action was weak (weak demand). I placed Fibonacci retracement to find potential resistance levels and got Fibonacci retracement 61.8% at $1,208.00 (held few times). I placed Fibonacci expansion to find potential bearish objective points and got Fibonacci expansion 61.8% at $1,185.00 and Fibonacci expansion 100% at $1,170.00. Major resistance is around the level of $1,220.00. Only if the price breaks that level, we may see a strong bullish movement. The short-term trend is neutral.
Daily Fibonacci pivot points:
Resistance levels:
R1: 1,206.40
R2: 1,207.06
R3: 1,208.15
Support levels:
S1: 1,204.26
S2: 1,203.60
S3: 1,202.53
Trading recommendations: Be careful when buying gold at this stage since our Fibonacci retracement 61.8% was successfully held.
