09.08.201611:35 Forex Analysis & Reviews: Gold analysis for August 09 , 2016

Long-term review

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Since our previous analysis, gold has been trading downwards. As I expected, the price tested the level of $1,337.87 in an average volume. According to the H1 time frame, I found a lack of supply at the level of $1,330.00. It is very risky to sell at this stage. There is strong bullish divergence on the RSI oscillator and a lack of selling pressure according to the volume analysis. I placed Fibonacci retracement to find potential resistance levels and got Fibonacci retracement 38.2% at the price of $1,343.00. According to the daily time frame, I found very high effort (volume) with very weak price action, which is sign of strength.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,335.00

R2: 1,336.40

R3: 1,339.80

Support levels:

S1: 1,329.30

S2: 1,327.50

S3: 1,324.60

Trading recommendations for today: Selling looks very risky. Watch for buying opportunities.

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