Overview:
Since our last analysis, gold has been trading downwards. As I expected, the price tested the level of $1,207.40 in a very high volume. The metal reached our second short-term target at $1,232.00. A strong upward bar in an ultra-high volume (buying climax) is seen in the daily time frame. Professional sellers used this massive buying climax to sell gold near the level of $1,263.00. Weakness appears on upbars. I placed Fibonacci retracement to find potential support levels. I got Fibonacci retracement 38.2% at the level of $1,181.00 and Fibonacci expansion 61.8% at the level of $1,131.00. The level of $1,198.00 should provide strong support.
Daily Fibonacci pivot points:
Resistance levels:
R1: 1,235.35
R2: 1,236.40
R3: 1,238.00
Support levels:
S1: 1,231.90
S2: 1,230.80
S3: 1,129.15
Trading recommendations: Sellers are in control and buying looks very risky. Watch for potential selling opportunities on rallies
