Since our last analysis, gold has been trading downwards. The price tested the level of $1,175.21 in a high volume. An intraday trend is still upward. In the daily time frame, we can observe an indecision bar in a high volume. In the H1 time frame, we can observe a volume spike (selling climax) in the background, which is a sign that selling gold at this stage looks risky. I placed major Fibonacci expansion to find potential objective points and got Fibonacci expansion 100% at the level of $1,191.00 and Fibonacci expansion 161.8% at the price of $1,247.00.
Daily Fibonacci pivot points :
Trading recommendations: Be careful when selling gold at this stage and watch for potential buying opportunities on dips. Next resistance level is seen around $1,191.00-$1,247.00.
The material has been provided by InstaForex Company – www.instaforex.com