FX.co ★ Gold analysis for May 11, 2016

Since our previous analysis, gold has been moving upwards. As I expected, the price tested the level of $1,274.32 in a high volume. According to the 30M time frame, I found that strength came in near the level of $1,270.00. According to the 15M time frame, I found the inverted head and shoulders formation (bottoming). The price has broke the neckline at the level of $1,271.00 and the price is ready to go higher. Be careful when selling and watch for buying opportunities on the dips. The first take profit level is set at the price of $1,280.80. The second take profit level is set at the price of $1,287.00.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,268.00

R2: 1,270.30

R3: 1,274.00

Support levels:

S1: 1,260.65

S2: 1,258.40

S3: 1,254.60

Trading recommendations for today: Be careful when selling gold at this stage and watch for potential buying opportunities on dips.