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FX.co ★ Gold analysis for May 23, 2016

Gold analysis for May 23, 2016

Gold analysis for May 23, 2016

Since our previous analysis, gold has been trading sideways at the price of $1,249.00. According to the M1 time frame, I found a massive volume spike (selling climax), which is a sign of strength. A wide-spread bearish bar is in an ultra-high volume, but notice that the bar closed in the middle. If professional traders are bearish, the bar should not close in the middle, especially not in an ultra-high volume. This is a potential accumulation phase by professional money. So, watch for buying opportunities on dips. The take profit level is set at the price of $1,251.30.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,253.20

R2: 1,254.00

R3: 1,255.40

Support levels:

S1: 1,250.40

S2: 1,249.60

S3: 1,248.00

Trading recommendations for today: Massive volume spike (selling climax). Selling looks very risky. Watch for buying opportunities.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade
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