Overview:
Since our last analysis, gold has been trading upwards. As we expected, the price went to test the level of $1,119.21. According to the daily time frame, we can observe a demand in a volume below the average. 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 H1 time frame, we can observe strong demand (wide spread) in an ultra high volume (buying climax). Our resistance at the price of $1,119.00 is on the test. Watch for a potential breakout of our trading range to confirm further direction.
Daily Fibonacci pivot points:
Resistance levels
R1: 1,107.00
R2: 1,112.58
R3: 1,120.00
Support levels:
S1: 1,093.65
S2: 1,088.00
S3: 1,081.00
Trading recommendations: Be careful when selling gold at this stage. Watch for a breakout of our trading range to confirm further direction. Buyers are in control in the short term today.
