Overview:
Since our last analysis, gold has been trading downwards. The price tested the level of 1,221.67. We can observe rejection from our resistnace level at the price of 1,234.00. I have placed Fibonacci retracement to find potential support levels and I got Fibonacci retracement 38.2% at the price of 1,217.00 and Fibonacci retracement 61.8% at the price of 1,204.00.According to the daily chart, we can observe weak demand in a volume below the average. On the mid term prospective, price rejected from our major Fibonacci expansion 100% at the price of 1,193.00, which caused price to start bullish phase. If the price breaks the level of 1,234.00 in a high volume, we may see the testing of the level of 1,244.00 (Fibonacci retracement 38.2%).
Daily pivot Fibonacci points:
Resistance levels:
R1: 1,237.54
R2: 1,239.31
R3: 1,242.17
Support levels
S1: 1,231.81
S2: 1,230.84
S3: 1,227.07
Trading recommendations: Buying still looks risky since gold is near resistance level