Since our last analysis, gold has been trading upwards. As we expected, the price went to test the level of $1,126.59. According to the daily time frame, we can observe a strong demand in a volume above the average. The price finaly broke our resistance at the level of $1,115.00. According to the H1 time frame we can observe that our resistance at the price of $1,115.00 now acts like support. I found strong upward trendline and the price respected well that trendline, which is a sign that buyers are in control and that we may expect bullish movement. I placed Fibonacci retracement to find potential resistance levels. I got Fibonacci retracement 38.2% at the price of $1,127.00 (successfully held), Fibonacci retracement 50% at the price of $1,141.00, and the Fibonacci retracement 61.8% at the price of $1,157.00.
Daily Fibonacci pivot points:
Trading recommendations: Be careful when selling gold at this stage. Watch for buying opportunites. Area around the price of $1,114.00 looks like very strong support and a good buy zone.
The material has been provided by InstaForex Company – www.instaforex.com