Overview:
Since our last analysis, gold has been trading sideways at the level of $1,203.00. My yesterday's forecast is still in play. It seems like sellers had no power to break through our support level at $1,196.00. In the daily time frame, I found a weak demand bar in an average volume. The demand remained high, which is a sign that selling gold looks risky at this stage. I found Fibonacci retracement 38.2% at the level of $1,181.00 and Fibonacci retracement 61.8% at the level of $1,131.00. The trend is upward according to the intraday and short-term time frames. The level of $1,235.00 may provide strong resistance. The price is above all key MA`s. Our 10 SMA has been successfully held according to the daily time frame. Anyway, if the price continues to move lower, we may see potential testing of $1,181.00.
Daily Fibonacci pivot points:
Resistance levels:
R1: 1,211.90
R2: 1,215.80
R3: 1,222.00
Support levels:
S1: 1,199.50
S2: 1,195.50
S3: 1,189.20
Trading recommendations: Be careful when selling gold and watch for potential buying opportunities on dips.
