Overview:

Since our last analysis, gold has been trading downwards. As I had expected, the price tested the level of $1,066.68. In the daily time frame, I found a supply bar and rejection from the SMA10. Our strong support around the levels of $1,075.00-$1,080.00 has become strong resistance (changing polarity) now. In the M30 time frame, our diagonal trend line got broken today, so watch for intraday selling opportunities. I also spoted strong rejection from Fibonacci retracement 50% at the level of $1,074.00. Intraday support is found at $1,065.00. Next strong daily support is seen around the level of $1,046.00. The breakout in a high volume ($1,065.00) will confirm the further downside continuation.

Daily Fibonacci pivot points:

Resistance levels

R1: 1,073.30

R2: 1,074.50

R3: 1,076.50

Support levels:

S1: 1,069.50

S2: 1,068.30

S3: 1,066.40

Trading recommendations: Be careful when buying gold since I saw a breakout of the diagonal trend line. Watch for potential selling opportunities.