FX.co ★ Gold analysis for May 04 , 2016

Since our previous analysis, gold has been moving downwards. As I expected, the price tested the level of $1,276.06 in a high volume. The price broke our consolidation of trading range between the price of $1,303.00 (resistance) and the price of $1,287.00 (support), which confirmed downward direction. My first take profit level at the price of $1,275.00 is on the test. If the price breaks the level of $1,275.00 in a high volume, we may see a potential testing of $1,256.50.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,298.00

R2: 1,302.00

R3: 1,308.60

Support levels:

S1: 1,285.00

S2: 1,281.00

S3: 1,274.50

Trading recommendations for today: Be careful when buying gold at this stage and watch for potential selling opportunities on the rallies.