Since our last
analysis, gold has been trading upwards. As we expected, the price
rejection from the level of 1,146.00 and tested the level of 1,178.54
in an ultra high volume. Our major Fibonacci expansion 161.8% at the
price of 1,146.00 held strongly, which is a sign that we may see
a potential larger bullish phase and even reverse in a mid-term
perspective. I have placed Fibonacci retracmeent from the most recent
swings. I got Fibonacci retracment 38.2% at the price of 1,179.00
(currently on the test) and Fibonacci retracment 61.8% at the price
of 1,207.00. Be careful when selling gold and watch for potential
buying opportunities. If the price breaks the level of 1,179.00 in a
high volume and strong price action, we may see possible testing the
level of 1,207.00.
recommendations: Selling gold at this stage looks risky since we got
strong rejection from our major support.
The material has been provided by InstaForex Company – www.instaforex.com