Overview:
Since our last analysis, gold has been trading upwards. As we expected, the price tested the level of $1,206.92. According to the daily time frame, we can observe a demand in an ultra high volume (buying climax) with very strong price action. Our Fibonacci retracement 61.8% (support) at the price of $1,174.00 was held successfully. It caused the price to start with an upward movement. Major resistance is seen around the level of $1,220.00. The short-term trend is bullish. According to the H4 time frame, we can observe demand in a very high volume. I placed Fibonaci expansion to find potential resitance levels and got Fibonacci expansion 61.8% at the price of $1,224.00, Fibonacci expansion 100% at the price of $1,255.00 and Fibonacci expansion 161.8% at the price of $1,304.00.
Daily Fibonacci pivot points:
Resistance levels:
R1: 1,206.95
R2: 1,213.81
R3: 1,124.90
Support levels:
S1: 1,184.71
S2: 1,177.80
S3: 1,166.70
Trading recommendations: Watch for potential buying opportunities after bearish correction. The first major resistance is around the price of $1,224.00.