FX.co ★ Analysis of gold for May 12, 2016

Since our previous analysis, gold has been moving downwards. The price tested the level of $1,266.32 in a high volume. On the 30M time frame chart, I found that strength came in at the $1,266.35 level. Bearish bar is in a high volume but it closed near the top (sign of strength). If there is strong selling pressure, the bar shouldn't close near the top. The next bar is bullish, which is another sign that selling looks very risky. Watch for buying opportunities on the dips. Take profit levels are set at $1,270.00 and $1,272.00 levels.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,280.30

R2: 1,283.40

R3: 1,288.50

Support levels:

S1: 1,270.30

S2: 1,267.50

S3: 1,263.25

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