FX.co ★ Gold analysis for August 05, 2016

Since our previous analysis, gold has been trading downwards. The price tested the $1,343.53 level in an ultra high volume. According to the 15M time frame, I found selling climax and ultra wide spread of the bar, which is a sign that selling looks extremely risky at this stage. I found potential end of ABC corrective phase, where is the C leg equal to A leg. The bar on the 15M time frame closed well of the low, which suggesting that buyers entered the market to react on strong drop. There is also a fake breakout of the swing low in the background, which indicates strong buying pressure. Watch for buying opportunities. Take profit level is set at the price of $1,364.00.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,361.40

R2: 1,364.80

R3: 1,370.40

Support levels:

S1: 1,350.20

S2: 1,346.70

S3: 1,341.20

Trading recommendations for today: Selling looks very risky. Watch for buying opportunities.