Overview:
Since our last analysis, gold has been trading sideways around the price of $1,095.00. According to the daily time frame, we can observe a weak small real body. I found a strong trading range between the prices of $1,077.00 (support) and $1,108.00. Selling gold around our support looks very risky and my advice is to watch for a potential breakout of the trading range to confirm further direction. According to the 4H time frame, we can observe reversal up-thrust bar in an ultra high volume. I have placed Fibonacci retracement from most recent upward leg in the M30 time frame. Fibonacci retracement 61.8% at the price of $1,090.00 is on the test. The short-term trend is bullish but the mid-term trend is bearish.
Daily Fibonacci pivot points:
Resistance levels
R1: 1,093.00
R2: 1,094.00
R3: 1,095.00
Support levels:
S1: 1,091.65
S2: 1,090.00
S3: 1,089.00
Trading recommendations: Be careful when selling gold at this stage since the price is near our strong support. Watch for a breakout of our trading range to confirm further direction. Buyers are in control today in the short term.
