Quick update on Gold.
Weekly Timeframe: The weekly supply area seen at 1255.20-1226.18 seems to be proving itself as the sellers are currently seen driving price south. Assuming that the sellers keep up with this enthusiasm, it is likely we may see another test of 1136.30, a weekly decision-point demand level.
Daily Timeframe: The daily timeframe shows that the buyers are struggling to maintain support within the daily decision-point demand area at 1185.97-1203.20. A small spike/tail was seen below here yesterday, consequently hitting a major daily swap level coming in at 1182.01. This in our opinion is the last line of defense against the aforementioned weekly supply area; a daily close below here would expose 1149.42 which in turn could likely fuel further selling. Let’s take a look to see what the 4hr timeframe has to say about this.
4hr Timeframe: Assuming that the buyers can hold out above the daily swap level at 1182.01, and break above the high 1202.81 marked with a red arrow, we will then be confident that higher prices will likely be seen up to at least 1235.40, and begin looking for areas to enter long from.
Why 1235.40? As already mentioned in the previous analysis, the reasoning behind us believing price could move so high is simply because supply has already likely been consumed at 1220.56-1213.26 (blue arrow), and also lurking just above this area of supply, marked with a pink trendline is what we believe to be consumed supply as well. Check out the price behavior, we see this as pro money spiking north to collect unfilled sell orders to continue selling, but what this also does at the same time is clear the path north for future buying – limited sellers = clear path north for the buyers.
It will be interesting to see how Gold will develop in the next 24hrs.
Current buy/sell levels:
• Buy orders: Flat (Predicative stop-loss orders seen at: N/A).
• Sell orders: Flat (Predicative stop-loss orders seen at: N/A).
Daily Timeframe: The daily timeframe shows that the buyers are struggling to maintain support within the daily decision-point demand area at 1185.97-1203.20. A small spike/tail was seen below here yesterday, consequently hitting a major daily swap level coming in at 1182.01. This in our opinion is the last line of defense against the aforementioned weekly supply area; a daily close below here would expose 1149.42 which in turn could likely fuel further selling. Let’s take a look to see what the 4hr timeframe has to say about this.
4hr Timeframe: Assuming that the buyers can hold out above the daily swap level at 1182.01, and break above the high 1202.81 marked with a red arrow, we will then be confident that higher prices will likely be seen up to at least 1235.40, and begin looking for areas to enter long from.
Why 1235.40? As already mentioned in the previous analysis, the reasoning behind us believing price could move so high is simply because supply has already likely been consumed at 1220.56-1213.26 (blue arrow), and also lurking just above this area of supply, marked with a pink trendline is what we believe to be consumed supply as well. Check out the price behavior, we see this as pro money spiking north to collect unfilled sell orders to continue selling, but what this also does at the same time is clear the path north for future buying – limited sellers = clear path north for the buyers.
It will be interesting to see how Gold will develop in the next 24hrs.
Current buy/sell levels:
• Buy orders: Flat (Predicative stop-loss orders seen at: N/A).
• Sell orders: Flat (Predicative stop-loss orders seen at: N/A).
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