Since our previous analysis, gold has been moving upwards. The price tested the $1,246.09 level in a ultra high volume. On the daily time frame chart, I found that a head and shoulders pattern (topping formation) is forming. I have placed Fibonacci retracement and found 38.2% at the $1,238.00 level (successfully held). On the 15M time frame chart, I found a strong sign of weakness. We can observe a volume spike which is a buying climax (wide spread of the bar in a ultra high volume). Later on, I found no demand bars which is a clear intraday sell signal. Be careful when buying gold at this stage and watch for potential selling opportunities. Take profit level should be set at $1,228.50.
Daily Fibonacci pivot points:
Resistance levels:
R1: 1,239.90
R2: 1,243.00
R3: 1,248.45
Support levels:
S1: 1,229.25
S2: 1,225.95
S3: 1,220.65
Trading recommendations for today: Be careful when buying and watch for potential selling opportunities.