Since our last analysis, gold has been trading downwards. As we had expected, the price tested the level of $1,117.58. According to the daily time frame, we can observe a strong supply bar in a high volume. Watch only for selling opportunities after retracement. Our support level at $1,125.00 is on the test. If the price breaks this support level, we will have the second support around the price of $1,111.00. In the background, we have a strong sign of weakness (supply came in), which is a sign that this can be a turning point in the mid-term prospect. According to today’s price action in the H1 time frame, we saw that weakness has appeared.
Daily Fibonacci pivot points:
Trading recommendations: The strong sign of weakness is in the background. Watch only for selling opportunites after retracement.
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