Overview:
Since our last analysis, gold has been trading upwards. As we expected, the price tested the level of $1,218.72 in an ultra high volume. We can observe demand in an ultra high volume and strong price action in the daily time frame. The short-term trend is bullish. The first major resistance level at the price of $1,220.00 is on the test. If the price breaks the level of $1,220.00 in a high volume and strong price action, we may see possible testing of the level of $1,250.00 (Fibonacci expansion 100%). Be careful when selling and watch for potential buying opportunities above the price of $1,220.00.
Daily Fibonacci pivot points:
Resistance levels:
R1: 1,220.00
R2: 1,226.40
R3: 1,237.00
Support levels:
S1: 1,198.30
S2: 1,191.65
S3: 1,180.50
Trading recommendations: Be careful when selling gold at this stage and watch for potential buying opportunities (buy on dips).
