Potential long on gold setting up, what do you guys think?
Weekly view – For the past three weeks the gold market sold off, which as you can see, eventually clashed with a weekly demand area coming in at 1142.5-1167.3. From a long-term perspective, however, gold is still trending south in our opinion. For this bias to be invalidated, a push above the weekly trendline extended from the high 1488.0 would need to be seen.
Daily view: The daily timeframe on the other hand, reveals that price spiked below a proven daily buy zone at 1170.3-1184.0 on Friday that has so far held firm. On the condition that further buying comes into the market from here, it is likely a rally will ensue up to test the small daily supply area at 1196.2-1188.9.
4hr view: From the 4hr scale, we can see that once London opened its doors for business, the gold market rallied, consequently taking out a small 4hr supply area seen at 1178.4-1177.0. As far as we can see, this move has now opened the gates for price to challenge the next 4hr supply area seen above at 1187.0-1184.3.
With price sitting nicely around both weekly and daily demand zones (see above) at the moment, the focal point today will be the 4hr demand area seen below at 1169.4-1172.1. With that, our plan of action in the upcoming sessions is simple. If price hits this 4hr demand area before hitting the next area of supply above at 1187.0-1184.3 – our target (as per the blue arrows), then we’ll take a long position from around 1172.6 with a stop set just below at 1168.7. The risk/reward on this trade is around 2:5/3:0, which, as we’re sure you’ll agree is very attractive and well worth the risk.
Levels to watch/ live orders:
• Buys: 1172.6 (Stop loss: 1168.7).
• Sells: Flat (Stop loss: N/A).
Daily view: The daily timeframe on the other hand, reveals that price spiked below a proven daily buy zone at 1170.3-1184.0 on Friday that has so far held firm. On the condition that further buying comes into the market from here, it is likely a rally will ensue up to test the small daily supply area at 1196.2-1188.9.
4hr view: From the 4hr scale, we can see that once London opened its doors for business, the gold market rallied, consequently taking out a small 4hr supply area seen at 1178.4-1177.0. As far as we can see, this move has now opened the gates for price to challenge the next 4hr supply area seen above at 1187.0-1184.3.
With price sitting nicely around both weekly and daily demand zones (see above) at the moment, the focal point today will be the 4hr demand area seen below at 1169.4-1172.1. With that, our plan of action in the upcoming sessions is simple. If price hits this 4hr demand area before hitting the next area of supply above at 1187.0-1184.3 – our target (as per the blue arrows), then we’ll take a long position from around 1172.6 with a stop set just below at 1168.7. The risk/reward on this trade is around 2:5/3:0, which, as we’re sure you’ll agree is very attractive and well worth the risk.
Levels to watch/ live orders:
• Buys: 1172.6 (Stop loss: 1168.7).
• Sells: Flat (Stop loss: N/A).
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