Overview:
Since our last analysis, gold has been trading sideways at the level of $1,204.00. It seems like sellers had no power to break through our support level at $1,196.00. According to a daily time frame, I found a weak supply in a high volume, which is the potential sign of strength. I found that demand remained high, which is a sign that selling gold at this stage looks risky. I found Fibonacci retracement 38.2% at the level of $1,181.00 and Fibonacci retracement 61.8% at the level of $1,131.00. The trend is upward according to the intraday and short-term time frames. The level of $1,235.00 may provide strong resistance. The price is above all key MA`s. Our 10 SMA has been successfully held according to the daily time frame. Anyway, if the price continues to move lower, we may see potential testing of $1,181.00.
Daily Fibonacci pivot points:
Resistance levels:
R1: 1,225.40
R2: 1,234.85
R3: 1,250.00
Support levels:
S1: 1,195.00
S2: 1,185.40
S3: 1,170.00
Trading recommendations: be careful when selling gold and watch for potential buying opportunities on dips.