FX.co ★ Gold analysis for March 21 , 2016

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Since our last analysis, gold has been trading downwards. As I expected, the price tested and reached our first take profit level at $1,242.00 (Fibonacci expansion 161.8%). Downward pressure started because of strong head and shoulders formation from the top and successful breakout of the neckline. Volume confirmed the HSS pattern and that is a reason for selling pressure on the market. The second take profit level is set at the price of $1,230.00.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,255.95

R2: 1,256.70

R3: 1,257.80

Support levels:

S1: 1,253.40

S2: 1,252.60

S3: 1,251.40

Trading recommendations for today: be careful when buying gold, watch for selling opportunities on rallies.