Since our previous analysis, gold has been trading upwards. The price tested the level of $1,237.19 in an ultra high volume. Using the market profile analysis, I found buying climax and strong reaction from sellers. The price changed behaivor from bullish to bearish. Besides, the price is trading below the 21SMA according to the 30M time frame, which is a sign that buying looks very risky. I placed Fibonacci expansion to find potential downward targets. I got Fibonacci expansion 61.8% at the price of $1,279.00. The second target is set at the price of $1,269.00 (swing low). Watch for selling opportunities.
Fibonacci pivot points:
Resistance levels:
R1: 1,289.80
R2: 1,293.20
R3: 1,298.60
Support levels:
S1: 1,278.85
S2: 1,275.50
S3: 1,270.00
Trading recommendations for today: Massive weakness in the background. Watch for selling opportunities on pullbacks.
The material has been provided by InstaForex Company – www.instaforex.com
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