Since our last analysis, gold has been trading downwards. The price tested the level of $1,253.45. Strong resistance level is set at the price of $1,282.80. According to the M15 time frame, I found a confirmed head and shoulders formation (bearish formation). We got a successful breakout of the neckline in a high volume. Besides, the volume on the right shoulder decreased, which is a good sign for further downward movements. I placed Fibonacci expansion to find a potential downward target. The first take profit level is set at the price of $1,242.40 and the second take profit level is set at the price of $1,235.00.
Daily Fibonacci pivot points:
Trading recommendations for today: be careful when buying gold, watch for selling opportunities on rallies.