- Gold has reached its FIBO 38.2% retrace of the down run from 1303 to 1199, which is around 1240.
- Gold made a candle on 2hr frame chart.
- Support is around 1225-1230 (The yellow areas). Notice 1224 is 23.6% FIBO retrace of the recent down run while 1230 has proved to be a good support with a few of tops around that price on the left structure.
- Can draw a downtrend line from 1303 connecting lower highs. Gold may go up there.
- Short term sentiment in gold is still very strong after bad NFP number so gold probably will climb further next week.
- The next target is around 1260-ish, coincides with 61.8% FIBO retrace at 1263 and resistance by downtrend line.
What to do:
- Wait for gold to pull back at 1225-1230.
- Set a buy limit around 1227-1232 with a tight stop loss under 1220, and target 1260.
I think Asian traders have bought a lot this week so next Monday they may take some profit. Gold has ran up $30 today so it is logical to take profit first. This mean gold could consolidate a bit before rocketing higher.
Gold made a gravestone doji on 2hr chart. Let's see if it will start retrace now.