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Since our last analysis, gold has been trading downwards. As I expected, the price tested the level of $1,231.08. Our head and shoulders formation is still active and so far it is progressing. According to the 4H time frame, we can observe strong selling pressure in a high volume. Supply entered the market after strong rejection from the neckline and after we saw a strong sign of weakness on the 4H time frame bar. The intraday take profit level is set at the price of $1,225.60 (swing low) and the short term take profit level is set at the price of $1,214.00.
Daily Fibonacci pivot points:
Resistance levels:
R1: 1,251.50
R2: 1,253.60
R3: 1,256.95
Support levels:
S1: 1,245.00
S2: 1,243.40
S3: 1,239.70
Trading recommendations for today: be careful when buying gold, watch for selling opportunities on rallies.
