Overview:
Since our last analysis, gold has been trading upwards. As I expected, the price tested the level of $1,263.12 in an ultra-high volume. The metal reached our second short-term target at $1,232.00. The next upward target is set around $1,305.00. A strong upward bar in an ultra-high volume is seen in the daily time frame. This may be a potential buying climax bar and potential professional selling, but we need to see low demand to confirm a potential downward movement. Demand still exists in the market and it is very risky to sell. The M30 time frame shows strong upward pressure and very weak supply from the other side. Since gold is still in an uptrend according to the lower time frames, watch for potential buying opportunities on dips. I found strong intraday support at the level of $1,231.50. Intraday resistance is set at $1,263.00. Selling looks very risky as demand remains in a very high volume.
Daily Fibonacci pivot points:
Resistance levels:
R1: 1,256.90
R2: 1,270.00
R3: 1,256.95
Support levels:
S1: 1,214.00
S2: 1,200.75
S3: 1,179.30
Trading recommendations: Watch for potential buying opportunities on dips.
