FX.co ★ Gold analysis for June 22 , 2016

Since our previous analysis, gold has been trading downward. As I expected, the price tested the level of $1,261.08 in a high volume. The analysis from yesterday is still active and it is a good progress so far. I found a massive sell-off in a heavy volume in the background, which is a sign that buying looks very risky and that selling opportunities are preferable. According to the 4H time frame, there is testing of Fibonacci expansion 100% at the price of $1,262.00. If the price breaks the level of $1,262.00 in a high volume, we may see further downward continuation and potential testing of $1,240.00.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,287.90

R2: 1.294.50

R3: 1,304.90

Support levels:

S1: 1,266.80

S2: 1,260.30

S3: 1,249.70

Trading recommendations for today: Be careful when buying and watch for selling opportunities on pullbacks.