FX.co ★ Gold analysis for May 06 , 2016

Since our previous analysis, gold has been moving sideways at the price of $1,280.00. On the 4H time-frame chart, I found a broken downward channel (bullish flag) in a high volume, which is a sign that selling looks risky. I also found rejection from pivotal point at the price of $1,269.00, which is a strong sign that gold can rise. Watch for buying opportunities on the dips. The first take profit level is set at the price of $1,302.50.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,284.50

R2: 1,288.00

R3: 1,293.90

Support levels:

S1: 1,272.90

S2: 1,269.30

S3: 1,263.50

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