FX.co ★ Gold analysis for April 22 , 2016

Since our previous analysis, gold has been moving upwards. As I expected, the price tested the $1,270.00 level in a high volume. Anyway, the price rejected strongly from $1,270.00 and we saw a drop and testing of $1,243.65 in an ultra high volume. According to the daily time frame, I found a strong sign of weakness. The bar closed near the low with very wide spread (range) in a very high volume. According to the 30M time frame, I found a trading range between the price of $1,243.00 and $1,253.00. Due to a strong sign of weakness in the background, watch for potential bearish breakout of trading range to confirm further downward movement. Take profit level is set at the price of $1,228.00.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,265.00

R2: 1,270.60

R3: 1,279.40

Support levels:

S1: 1,247.60

S2: 1,240.10

S3: 1,233.40

Trading recommendations for today: be careful when buying and watch for potential selling opportunities.