Overview:
Since our last analysis, gold has been trading downwards. As we had expected, the price tested the level of $1,133.22. According to the daily time frame, we can observe a strong supply bar in a high volume. I had placed diagonal trendline and the price stoped extacly on it. Our Fibonacci retracement 50% at the level of $1,155.00 was successfully held. Our trading range got broken and support level at $1,145.00 failed to hold. Watch only for selling opportunities after retracement. We got support levels at $1,125.00 and $1,112.00. In the background, we got strong sign of weakness (supply came in), which is a sign that this can be turning point in the mid-term prospect.
Daily Fibonacci pivot points:
Resistance levels
R1: 1,151.00
R2: 1,156.00
R3: 1,165.00
Support levels:
S1: 1,134.35
S2: 1,129.00
S3: 1,120.80
Trading recommendations: The strong sign of weakness is in the background. Watch only for selling opportunites after retracement.
