Overview:
Since our last analysis, gold has been trading downwards. As we expected, the price rejected from our corrective FE 161.8% at the price of 1,252.00 and tested the level of 1,239.18 on very high volume. If the price breaks the level of 1,238.00 on higher volume, we may see testing of the level of 1.222.00 (FE 161.8%). We can observe large selling climax at the price of 1,242.00 which is a sign that we got strong supply on the market. Buying gold looks risky since we are in short- and mid-term downtrend, and we also got finished the major ABCD bullish corrective phase.
Daily pivot Fibonacci points:
Resistance levels:
R1: 1,247.29
R2: 1,248.05
R3: 1,249.27
Support levels:
S1: 1,244.85
S2: 1,244.09
S3: 1,242.87
Trading recommendation: Trading the metal, be careful with buying and try to catch the bearish continuation phase.