Overview:
Since our last analysis, gold has been trading downwards. The price tested the level of $1,085.25. In the daily time frame, we can observe a weak a supply bar and rejection from resistance cluster at the level of $1,094.00. Buying at this stage looks risky since the price rejected our strong resistance. The intraday trend is neutral. In the M30 time frame, I found a volume spike (buying climax) and a wide spread of bars. Also, we can observe a broken upward trend line. Buying at this stage looks very risky. An intraday target is set at the level of $1,071.00. Be careful when buying gold at this stage and watch for potential selling opportunities. The key support is found at the level of $1,046.00. A potential breakout of the level of $1,046.00 will confirm the short-term continuation of the downward trend.
Daily Fibonacci pivot points:
Resistance levels:
R1: 1,092.00
R2: 1,093.40
R3: 1,095.60
Support levels:
S1: 1,087.50
S2: 1,086.00
S3: 1,083.85
Trading recommendations: Trading recommendations: Watch for potential selling opportunities, buying looks risky.
