Overview:
Since our last analysis, gold has been trading upwards. As I expected, the price tested the level of $1,253.08 in a high volume. In the daily time frame, I found a demand bar with a weak close, but in a high volume, which means that demand is still observed. At this stage, selling looks risky. Our key MA`s are heading upwards (upward trend). The key resistance level is seen at $1,262.70. If the price breaks the level of $1,262.70 in a high volume, we may see potential testing of $1,307.00. In the M30 time frame, I found a fake breakout of an upward trend line, which is a sign of strength.
Daily Fibonacci pivot points:
Resistance levels:
R1: 1,242.75
R2: 1,260.55
R3: 1,271.00
Support levels:
S1: 1,214.50
S2: 1,204.10
S3: 1,186.35
Trading recommendations: be careful when selling gold and watch for potential buying opportunities on dips.