Overview:
Since our last analysis, gold has been trading downwards. As we had expected, the price tested the second major support at the level of $1,085.00. We can observe a massive volume spike (selling climax), which is a sign that selling gold at this stage looks risky. A trend is still downward, but since we got the massive volume spike at the critical support level we may expect an upward correction to take place. Anyway, if the price breaks the level of $1,083.00, we may see a continuation downward. The resistance level is seen at $1.102.50.
Daily Fibonacci pivot points:
Resistance levels
R1: 1,090.25
R2: 1,090.80
R3: 1,091.70
Support levels:
S1: 1,088.50
S2: 1,087.95
S3: 1,087.35
Trading recommendations: Be careful when selling gold at this stage since the price is testing the key support level and we got the massive volume spike.
