Overview:
Since our last analysis, gold has been trading upward. As we expected, the price tested the level of $1,196.08 in a high volume. According to the daily time frame, we can observe demand in a volume below the average. Our Fibonacci retracement 61.8% (support) at $1,174.00 was held successfully. Major resistance is seen around the level of $1,220.00. The short-term trend is bullish. According to the H4 time frame, we can observe demand in a high volume with strong price action. I placed Fibonacci expansion to find potential resistance levels and got Fibonacci expansion 61.8% at $1,220.00, Fibonacci expansion 100% at $1,250.00, and Fibonacci expansion 161.8% at $1,300.00. According to the 30-minutes time frame, we can observe inverted head and shoulders formation, which is a good sign for futher bullish movement.
Daily Fibonacci pivot points:
Resistance levels:
R1: 1,191.00
R2: 1,194.35
R3: 1,200.00
Support levels:
S1: 1,179.00
S2: 1,175.20
S3: 1,169.00
Trading recommendations: Be careful when selling gold at this stage and watch for potential buying opportunities (buy on dips).
