FX.co ★ Gold analysis for May 19 , 2016

Since our previous analysis, gold has been downwards. As I expected, the price tested the level of $1,252.27 in a high volume. My downward target at the price of $1,256.00 has been met. A lower diagonal of the channel is on the test. We may see potential bullish correction but due to strong downward pressure at the moment, buying looks risky. The second downward target level is set at the price of $1,238.00.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,272.35

R2: 1,277.00

R3: 1,284.50

Support levels:

S1: 1,257.40

S2: 1,252.75

S3: 1,245.30

Trading recommendations for today: Downward pressure on the market. Watch for selling opportunities on pullbacks.