Overview:

Since our last analysis, gold has been trading upwards. The price tested the level of 1,252.20 on lower volume. Our previous analysis is still valid and if the price breaks the area of 1,266.00 on higher volume, we may expect further bullish movement and continuation of the bullish corrective phase. Otherwise, if the price breaks an area of 1,238.00, we may expect bearish continuation phase and possible testing of the level 1,222.00. We can observe large buying climax at the price of 1,264.7 which is a sign that buying gold at this stage looks risky. Buying gold looks risky since we are in short- and mid-term down trend, and we can also observe the finish of the major ABCD bullish corrective phase.

Daily pivot Fibonacci points:

Resistance levels:

R1: 1,258.80

R2: 1,262.00

R3: 1,267.20

Support levels:

S1: 1,248.40

S2: 1,245.20

S3: 1,240.00

Trading recommendation: Trading the metal, be careful with buying and try to catch the bearish continuation phase if the price breaks the area of 1.238.00