Overview:
Since our last analysis, gold has been trading sideways around the price of $1,077.00. In the daily time frame, I found testing of 50 SMA. Be careful when buying gold at this stage. The intraday trend is upward, but short- and mid-term trends are downward. In the H4 time frame, the price is above SMA 50 and 100, but moving averages are flat. According to the M30 time frame, I found a volume spike and very wide spread of the bar (buying looks very risky). I found symmetrical triangle (trend continuation pattern) and the price is trying to break to the upside, but in my opinion, we may see a potential fake breakout so be careful when buying. I expect testing of $1,050.00. I would like to see a breakout in a high volume at $1,046.00 confirming the trend continuation pattern. The first intraday support is at the price of $1,074.00. In the daily time frame, I found strong cluster resistance around the price of $1,080.00-$1,087.00.
Daily Fibonacci pivot points:
Resistance levels:
R1: 1,080.10
R2: 1,084.65
R3: 1,092.00
Support levels:
S1: 1,065.35
S2: 1,060.80
S3: 1,053.45
Trading recommendations: Watch for potential selling opportunities, buying looks risky.
