Overview:

Since our last analysis, gold has been trading upwards, the price tested the level of 1,314.13 on volume above the average. Our previous analysis is still active and we've got good progress. According to the daily chart, we can observe supply bar on volume below the average (no supply bar). Gold rejected from the level of 1,279.00 (previous swing high) and that caused price to start bullish correction. According to the short-term prospective, Gold is in progress of bearish corrective phase and I've placed Fibonacci Retracement to find the first down station. I've got Fibonacci Retracement 61.8% at the price of 1,263.00. If the price breaks the level of 1,279.00 on higher volume, we may see testing the level of 1,263.00. According to the H4 timeframe, we can observe demand on high volume, which is a sign that selling at this stage looks risky. Major resistance may be at the price of 1,321.00 (Fibonacci retracement 38.2%). My advice is to watch for selling opportunities after retracement. Any larger supply on high volume may confirm further bearish movement.

Daily pivot Fibonacci points:

Resistance levels:

R1: 1,302.92

R2: 1,304.92

R3: 1,308.17

Support levels:

S1: 1,296.42

S2: 1,294.42

S3: 1,291.17

Trading recommendation: Trading the metal, be careful with short-term buying at this stage since gold is in progress of major bearish corrective phase. Watch for selling opportunities after retracement.