Overview:
Since our last analysis, gold has been trading downwards. As I expected, the price tested the level of $1,058.58 in a high volume. In the daily time frame, I found an inside-bar formation with a support at the level of $1,058.15 and resistance at the level of $1,088.50. The trend is downward in mid and long terms. According to the H1 time frame, we can observe a buying climax with a very wide spread of bars and strong reaction from sellers. I found lower swing highs and rejection from our supply trend line, which is a sign of downward continuation. Our Fibonacci expansion 100% is at the level of $1,063.00 was broken and Fibonacci expansion 161.8% at the level of $1,050.00 is next support.
Daily Fibonacci pivot points:
Resistance levels
R1: 1,072.30
R2: 1,076.50
R3: 1,083.25
Support levels:
S1: 1,058.80
S2: 1,054.60
S3: 1,047.90
Trading recommendations: Watch for selling opportunities. The trend is downward in short and mid terms.
