FX.co ★ Gold analysis for July 27, 2016

Since our previous analysis, gold has been trading sideways at the price of $1,320.00. According to the 4H time frame, I found strength in the background. I found bullish engulfing pattern, a double bar low with a higher close with ultra high volume demand and the morning star formation. All of these formations happened near the strong support at the price of $1,312.00. I have placed Fibonacci expansion to find potential upward targets. I got Fibonacci expansion 61.8% at the price of $1,326.00 and Fibonacci expansion 100% at the price of $1,335.00.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,320.70

R2: 1,321.90

R3: 1,323.85

Support levels:

S1: 1,316.80

S2: 1,315.60

S3: 1,313.65

Trading recommendations for today: selling looks risky, watch for buying opportunities.