Gold analysis for May 17 , 2016

Source: Forex Analysis

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Since our previous analysis, gold has been moving downwards. The price tested the $1,268.91 level in a high volume. On the daily time frame chart, I found a strong sign of weakness. I found a bullish bar in an average volume bit with very weak close. The bar closed below the middle, which is a strong sign of weakness. I also found a supply trend line, which held successfully. According to the 15M time frame, there is potential bearish flag formation. So, watch for potential breakout of the bearish flag to confirm further downward continuation. Targets are set at the price of $1,269.00 and $1,257.80.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,284.70

R2: 1,288.00

R3: 1,294.00

Support levels:

S1: 1,273.30

S2: 1,269.80

S3: 1,264.00

Trading recommendations for today: be careful when buying gold and watch for selling opportunities on the rallies.

The material has been provided by InstaForex Company – www.instaforex.com