our last analysis, gold has been trading sidewas around the price of
1,200.00. We are facing another low volume day, which is a sign that
buying at this stage looks risky. According to the daily time frame,
we can observe weak demand, which is a sign that buying looks risky.
I have placed Fibonacci expansion to find potential support levels
and I got Fibonacci expansion 61.8% at the price of 1,194.00
(successfully tested), Fibonacci expansion 100% at the price of
1,188.00 and Fibonacci expansion 161.8% at the price of 1,177.00. If
the price breaks the level of 1,194.00 in a high volume and strong
price action, we may see potential testing the level of 1,188.00.
According to the 1H time frame, we can observe fail absorption
volume, which is a sign that buyers don’t have power for a larger bullish
movement. Be careful when buying at this stage but watch for buying
opportunities after a bearish corrective phase.
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