FX.co ★ Gold analysis for August 19, 2016

Since our previous analysis, gold has been trading downwards. The price tested the level of $1,344.48 in an ultra high volume. According to the 1H time frame, I found that Gold is in a bearish corrective phase. I have placed Fibonacci expansion levels to find a potential end of the bearish corrective phase. I got Fibonacci expansion 100% at the price of $1.343.00 and Fibonacci expansion 161.8% at the price of $1,336.75. There is a potential stopping volume according to the 1H time frame. So, be careful when selling Gold at this stage and wait until the bearish corrective phase is complete and then try to build buying positions. The first upward target is set at the price of $1,353.00.

Hourly Fibonacci pivot points:

Resistance levels:

R1: 1,351.10

R2: 1,351.60

R3: 1,352.30

Support levels:

S1: 1,349.60

S2: 1,349.15

S3: 1,348.40

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