Since our previous analysis, gold has been moving downwards. The price tested the level of $1,241.26 in a high volume. According to the daily time frame, I found that head and shoulders pattern (toping formation) is forming. I found lack of demand near the level of $1,261.00, and that caused sellers to step in and establish selling positions. Support level is set at the price of $1,216.50. The valid breakout in a high volume of $1,216.50 will confirm the head and shoulders formation.
Daily Fibonacci pivot points:
Resistance levels:
R1: 1,262.50
R2: 1,265.10
R3: 1,236.45
Support levels:
S1: 1,253.80
S2: 1,251.00
S3: 1,246.80
Trading recommendations for today: Be careful when buying and watch for potential selling opportunities.
