Overview :
Since our last analysis, gold has been trading downwards. As we expected, the price has tested the level of $1,178.30 in a high volume. Accoridng to the daily time frame, we can observe supply in a volume below the average (weak supply). I have placed Fiobonacci retracement to find potential support levels. I have got Fibonacci retracement 38.2% at the price of $1,190.00 (already broken) and Fibonacci retracement 61.8% at the price of $1,172.00. Anyway, be careful when selling gold at this stage since we have a weak supply in the background.
Daily Fibonacci pivot points:
Resistance levels :
R1: 1,195.68
R2: 1,199.78
R3: 1,206.43
Support levels :
S1: 1,182.38
S2: 1,178.28
S3: 1,171.60
Trading recommendations: Be careful when selling gold at this stage since we have a weak supply in the background.