Since our previous analysis, gold has been trading upwards. The price tested the level of $1,336.86 in a high volume. The recent strength on Gold was caused due to FED Fund rate decision yesterday but today I found lack of professional interest for an upward movement. I found a broken upward trend line and sideways market near the price of $1,333.50. In the background, I found climatic action and widespread of the bar closing in the middle, which indicates that weakness. Using the market profile, I found potential downward targets. The first target is set at the price of $1,326.50 and second at the price of $1,320.00.
Daily Fibonacci pivot points:
Resistance levels:
R1: 1,326.60
R2: 1,327.00
R3: 1,328.00
Support levels:
S1: 1,324.85
S2: 1,324.30
S3: 1,323.40
Trading recommendations for today: Strong sign of weakness in the background and broken upward trend line. Watch for potential selling opportunities.
