Short from 1239.6 at AB=CD 161.8% ext...
Looking at the weekly chart this morning, the yellow metal recently struck the underside of a weekly resistance level seen at 1241.2. While this may be the case, down on the daily chart the bulls convincingly closed above daily supply at 1232.9-1224.5 (now acting support area). This does, of course, create somewhat of a conflict between the two higher timeframes. In our experience, however, it is usually the higher timeframe that leads the way, so we’re in favor of a selloff materializing in the not so distant future.
Over on the H4 candlesticks, bullion advanced up to the H4 AB=CD (see black arrows) 161.8% ext. at 1241.9 amid yesterday’s segment, which, as you can see, is holding ground for the time being. For those who read Wednesday’s report you may recall that we highlighted this zone as a possible reversal area. Given that the weekly resistance level is now in play, our team has shorted on the close of the last bearish H4 candle at 1239.6ish, with a stop logged in at 1245.4. Our first target objective can be seen at the H4 demand area formed from 1227.6-1230.5.
Over on the H4 candlesticks, bullion advanced up to the H4 AB=CD (see black arrows) 161.8% ext. at 1241.9 amid yesterday’s segment, which, as you can see, is holding ground for the time being. For those who read Wednesday’s report you may recall that we highlighted this zone as a possible reversal area. Given that the weekly resistance level is now in play, our team has shorted on the close of the last bearish H4 candle at 1239.6ish, with a stop logged in at 1245.4. Our first target objective can be seen at the H4 demand area formed from 1227.6-1230.5.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.