Since our previous analysis, gold has been trading sideways at the price of $1,316.50. According to the 4H time frame, I found a large falling wedge formation (bullish formation). The price is in the middle of the falling wedge. My advice is to watch for a breakout of the wedge formation (current buy point at $1,343.50). Anyway, if the price breaks the level of $1,310.00 before the larger upward movement, Gold may again visit a lower diagonal around the price of $1,294.00. According to the Daily time frame, I found successful rejection of 100SMA, which is a sign that buyers are in control at this point.
Daily Fibonacci pivot points:
Resistance levels:
R1: 1,320.30
R2: 1,321.00
R3: 1,322.00
Support levels:
S1: 1,318.00
S2: 1,317.80
S3: 1,316.75
Trading recommendations for today: Watch for breakout of wedge formation to confirm upward continuation.
