Overview:
Since our last analysis, gold has been trading downwards. As I expected, the price tested the level of $1,085.33. In the daily time frame, we can observe rejection of Fibonacci retracement 38.2% and successful rejection of SMA 100. Buying at this stage looks risky since the price rejected our strong resistance. The intraday trend is downward. Besides, the short- and mid-term trend is downward. I placed Fibonacci expansion to find a potential end of upward correction and got Fibonacci expansion 161.8% at the price of $1,115.50 (held successfully). Be careful when buying gold at this stage and watch for potential selling opportunities. The key support for gold is at the price of $1,046.00.
Daily Fibonacci pivot points:
Resistance levels:
R1: 1,104.63
R2: 1,107.67
R3: 1,112.90
Support levels:
S1: 1,094.00
S2: 1,090.10
S3: 1,085.50
Trading recommendations: Watch for potential selling opportunities, buying looks risky.
