Gold Analysis for March 18, 2016
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Since our last analysis, gold has been trading downwards. The price tested the level of $1,253.45. Strong resistance level is set at the price of $1,282.80. According to the M15 time frame, I found a confirmed head and shoulders formation (bearish formation). We got a successful breakout of the neckline in a high volume. Besides, the volume on the right shoulder decreased, which is a good sign for further downward movements. I placed Fibonacci expansion to find a potential downward target. The first take profit level is set at the price of $1,242.40 and the second take profit level is set at the price of $1,235.00.
Daily Fibonacci pivot points:
Resistance levels:
R1: 1,267.35
R2: 1,270.70
R3: 1,276.00
Support levels:
S1: 1,256.50
S2: 1,253.00
S3: 1,247.70
Trading recommendations for today: be careful when buying gold, watch for selling opportunities on rallies.
The material has been provided by InstaForex Company - www.instaforex.com
