FX.co ★ Gold analysis for May 31 , 2016

Since our previous analysis, gold has been trading upwards. The price tested the level of $1,214.08 in an average volume. According to the 30M time frame, I found a potential bearish flag formation. Watch for potential breakout of an upward channel to confirm further downward continuation. If the price breaks the level of $1,209.70, we may see a downward continuation. Take profit level is set at the price of $1.200.00. Anyway, if the price rejects from the upward diagonal, we may see potential testing of $1,215.50.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,213.40

R2: 1,216.00

R3: 1,220.40

Support levels:

S1: 1,204.70

S2: 1,202.00

S3: 1,197.70

Trading recommendations for today: Be careful when buying Gold at this stage and watch for selling opportunities on pullbacks.