Overview:
Since our last analysis, gold has been trading sideways at the price of $1,215.00. Our support at the price of $1,196.00 is on the test. In the daily time frame, I found a supply bar in an average volume. At this stage buying looks risky. According to the H4 time frame, I found buying climax in the background, which is a sign that buying looks risky. Besides, we can observe weak demand in low volume around the price of $1,220.00. I have placed Fibonacci expansion to find potential support levels and downward targets and got Fibonacci expansion 61.8% at the price of $1,195.00, Fibonacci expansion 100% at the price of $1,168.00, and Fibonacci expansion 161.8% at the price of $1,123.00. Watch for a potential breakout of $1,191.00 to confirm further downward side.
Daily Fibonacci pivot points:
Resistance levels:
R1: 1,221.60
R2: 1,227.00
R3: 1,235.40
Support levels:
S1: 1,204.00
S2: 1,198.50
S3: 1,189.60
Trading recommendations: Be careful when buying gold and watch for potential selling opportunities on rallies.
