Overview:

Since our last analysis, gold has been trading downwards. As we expected, the price reached our down station and tested level of the 1,237.86 on high volume. I have placed Fibonacci expansion levels from the most recent swings and I got FE 100 % at price 1,240.00 (already met) and FE 161.8 % at price 1.222.00. We can observe large selling climax at price 1,238.70 which caused so start smaller bullish correction like reaction on large selling climax. We may see possible testing of the level 1,250.00 – 1,253.00 before we continue with bearish movement. If the price breaks our FE 100 % (1,240.00) on high volume, we may see the testing of next down station around the prices of 1,222.00(FE 161.8 %)- 1.219.00 (Major FR 61.8 %). Buying gold looks risky since we are in short-and mid-term downtrend, and we also got finished the major ABCD bullish corrective phase.

Daily pivot Fibonacci points:

Resistance levels:

R1: 1,261.51

R2: 1,268.55

R3: 1,279.93

Support levels:

S1: 1,238.75

S2: 1,231.71

S3: 1,220.33

Trading recommendation: Trading the metal, be careful when buying and try to catch the bearish continuation phase.