Overview:
Since our last analysis, gold has been trading downwards. As I had expected, the price tested the level of $1,073.95. According to the daily time frame, I found strong pin bar and reaction from buyers, which did not let sellers to break the key support at the level of $1,077.00 According to the M30 time frame, I found massive volume spike at the level of $1,074.00 and very strong reaction from buyers shortly after (sign of strenght). Watch for potential intraday buying opportunities. The level of $1,085.00 is intraday resistance. Anyway, If the price breaks the major support level ($1,077.00), we may see potential testing at $1,043.00.
Daily Fibonacci pivot points:
Resistance levels
R1: 1,084.70
R2: 1,084.85
R3: 1,085.00
Support levels:
S1: 1,084.30
S2: 1,084.00
S3: 1,083.60
Trading recommendations: Watch for a potential breakout of our trading range. If the price breaks the level of $1,077.00 in a high volume, we may see further downward movement. Selling looks risky at this stage.
