Overview:
Since our last analysis, gold has been trading sideways around the price of $1,138.00. The intraday trend is neutral. In the daily time frame, we can observe testing of Fibonacci retracement 61.8% at the price of $1,136.70 and a neutral bar (indecision). In the M30 time frame, we can observe a massive volume spike (Friday news) and buying climax. After the volume spike, we created a small trading range between the prices of $1,141.00 (resistance) and $1,129.90. I placed Fibonacci retracement to find potential support levels and got Fibnacci retracement 38.2% at the price of $1,127.00, Fibonacci retracement 50% at the price of $1,123.00 and Fibonacci retracement 61.8% at the price of %1,118.50. A potential downward target is near the price of $1,110.00. Anyway, if the price breaks the level of $1,141.00 in a high volume, we may see possible testing of the level of $1,156.00.
Daily Fibonacci pivot points :
Resistance levels
R1: 1,141.00
R2: 1,143.15
R3: 1,146.60
Support levels:
S1: 1,133.90
S2: 1,131.75
S3: 1,128.25
Trading recommendations: Be careful when buying gold at this stage and watch for potential selling opportunities after retracement.
