Overview
Since our last analysis, gold has been trading downwards, as we expected, the price tested the level of 1,286.44 on volume above the average. As you can see in the graph, our major Fibonacci retracement 38.2% (1,315.55) held successfully, and that caused price to start downward movement. According to the 4H timeframe we can observe supply on volume above the average, which is a good sign for the potential bearish movement. First down station may be the price of 1,277.00 (swing low). If the price starts with upward movement, we will get submajor Fibonacci retracement 38.2% at the price of 1,297.00. Be caerful with buying and watch for selling opportunities.
Daily pivot Fibonacci points:
Resistance levels:
R1: 1,307.94
R2: 1,325.27
R3: 1,335.84
Support levels:
S1: 1,280.04
S2: 1,269.47
S3: 1,252.14
Trading recommendation: Trading the metal, be careful with short-term buying at this stage since price is testing Fibonacci retracement. Watch for selling opportunities after retracement.