Since our previous analysis, gold has been trading downward. As I expected, the price tested the level of $1,272.31 in a high volume. The analysis from yesterday is still active and it is a good progress so far. I found a massive sell-off in a heavy volume, which is a sign that buying looks very risky and that selling opportunities are preferable. According to the 4H time frame, I found a broken upward trend line in a heavy volume. I placed Fibonacci expansion to find potential downward targets and found Fibonacci expansion 61.8% at the price of $1,275.00 (already broken), Fibonacci expansion 100% at the price of $1,260.00, and Fibonacci expansion 161.8% at the price of $1,237.40. According to the daily time frame, there is a successful rejection form the previous swing high at the price of $1,302.00. I found an upthrust bar (supply overcame demand) in a heavy volume.
Daily Fibonacci pivot points:
Resistance levels:
R1: 1,296.56
R2: 1.302.20
R3: 1,310.20
Support levels:
S1: 1,282.90
S2: 1,274.90
S3: 1,269.30
Trading recommendations for today: Be careful when buying and watch for selling opportunities on pullbacks.
