FX.co ★ Gold analysis for August 08, 2016

Since our previous analysis, gold has been trading downwards. The price tested the level of $1,329.79 in an average volume. According to the H1 time frame, I found a lack of supply at the level of $1,330.00. It is very risky to sell at this stage. There is strong bullish divergence on the RSI oscillator and a lack of selling pressure according to the volume analysis. I placed Fibonacci retracement to find potential resistance levels and got Fibonacci retracement 38.2% at the price of $1,338.00. There is also a swing high at the price of $1,338.00. Be careful when selling and watch for potential buying opportunities.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,341.30

R2: 1,342.40

R3: 1,344.15

Support levels:

S1: 1,337.80

S2: 1,336.70

S3: 1,334.90

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