Looking to short gold from 1277.9...
Mid-London trading saw the yellow metal resume its advance against the U.S. dollar yesterday from H4 support at 1260.0, off the back of weak equity markets. This brought gold to highs of 1271.6 and saw price shake hands with H4 resistance at 1270.6, which for now seems to be holding firm. Over on the weekly chart, we can see that there is a chance that the metal may continue to push higher to plug into offers around weekly supply coming in at 1307.4-1280.0. Looking down to the daily chart, nonetheless, price is also seen loitering within shouting distance of a daily supply base drawn from 1288.5-1272.9 (sits within the aforementioned weekly supply).
Our suggestions: Given the higher timeframe picture, we have no interest in looking to short from the H4 resistance line at 1270.6. An area we are interested in, however, is the H4 supply seen above at 1282.1-1278.5. This zone sits within both of the above said higher timeframe supplies, thus making it a beautiful barrier to sell from. A pending sell order has been placed at 1277.9 with a stop above at 1283.0.
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