Since our last analysis, gold has been trading downwards. As I expected, the price tested the level of $1,190.73. The metal reached and rejected our strong support level at $1,196.00. A strong upward bar in an ultra-high volume (buying climax) is seen in the daily time frame in the background. Professional sellers used this massive buying climax to sell gold near the level of $1,263.00. Anyway, the price respected our support level, and I found that demand remained high, which is a sign that selling gold at this stage looks risky. I found Fibonacci retracement 38.2% at the level of $1,181.00 and Fibonacci retracement 61.8% at the level of $1,131.00. The trend is upward according to intraday and short-term time frames. The level of $1,235.00 may provide a good resistance. Price is above all key MA`s. Our 10 SMA has been held successfully according to the daily time frame.
Daily Fibonacci pivot points:
Trading recommendations: be careful when selling gold and watch for potential buying opportunities on the dips.