our last analysis, gold has been trading downward. The price tested
and rejected from the level of 1,187.96. Our corrective Fibonacci
expansion 161.8% at the price of 1.195.00 has been held successfully,
which caused price to start with an upward movement. I placed
Fibonacci retracement to find potential support levels and got
Fibonacci retracement 61.8% at the price of 1,180.00. My advice is to
look for buying opportunities near the lows (after retracement).
According to the 1H time frame, we can observe selling climax and
gold is not in absorption phase. So, selling gold at this stage looks
risky, watch for potential buying oppoprtunities. According to the daily time frame, we got indecision bar.
pivot Fibonacci points:
recommendations: Watch for potential buying opportunities after
retracement (buy on the lows).
The material has been provided by InstaForex Company – www.instaforex.com