Weekly outlook and review on Gold.
Weekly Timeframe: A full-bodied bearish candle formed last week resulting in price closing below a weekly decision-point level at 1244.08. As per this timeframe, price appears relatively free to trade lower down to at least a valid ‘weekly buy zone’ seen at 1156.70-1194.45.
Daily Timeframe: The gold market significantly decreased in value last week, resulting in price closing the week at 1229.29 just above a minor daily-decision-point level at 1227.66. Our first impression of this level was not fantastic, and as such, we expect this level to break sometime during the week. Once, or indeed if a decline in value is seen, things would likely get very interesting.
Below this level appears to be nothing but consumed demand on this timeframe, take note of the prominent tails to the left (1214.84/1218.35), these tails likely consumed any serious buy orders before rallying higher, and thus clearing the path south for any future selling. Assuming the level does see a significant break lower, the next key area of interest comes in at a daily Quasimodo support level (1211.67), which will very likely see some sort of bullish reaction, since at this point price would be trading very close to the aforementioned ‘weekly buy zone’ at 1156.70-1194.45.
4hr Timeframe: The 4hr demand area at 1231.56-1235.85 was consumed late last week; this will very likely encourage follow-through selling down to an obvious 4hr support flip level at 1223.33. The zone between these two areas is likely free of any demand, since if one takes a look back in history (between this zone), a tail seen at 1227.15 should jump out at you and shout: ‘CONSUMED, READY FOR LOWER PRICES!’
We will only allocate a price action confirmation buy level above the aforementioned 4hr support flip level at 1224.54, since price could very well continue on south to more distinguishable levels (for levels see above – daily/weekly timeframe analysis).
Pending orders/Price action confirmation levels:
• Areas to watch for buy orders: Pending orders: No pending buy orders are seen in the current market environment. Price action confirmation levels: 1224.54 (Stop loss: Dependent on price action after the level has been confirmed, Take profit level(s): Dependent on approaching price action after the level has been confirmed).
• Areas to watch for sell orders: Pending orders: No pending sell orders are seen in the current market environment. Price action confirmation levels: No price action confirmation sell levels are seen in the current market environment.
Daily Timeframe: The gold market significantly decreased in value last week, resulting in price closing the week at 1229.29 just above a minor daily-decision-point level at 1227.66. Our first impression of this level was not fantastic, and as such, we expect this level to break sometime during the week. Once, or indeed if a decline in value is seen, things would likely get very interesting.
Below this level appears to be nothing but consumed demand on this timeframe, take note of the prominent tails to the left (1214.84/1218.35), these tails likely consumed any serious buy orders before rallying higher, and thus clearing the path south for any future selling. Assuming the level does see a significant break lower, the next key area of interest comes in at a daily Quasimodo support level (1211.67), which will very likely see some sort of bullish reaction, since at this point price would be trading very close to the aforementioned ‘weekly buy zone’ at 1156.70-1194.45.
4hr Timeframe: The 4hr demand area at 1231.56-1235.85 was consumed late last week; this will very likely encourage follow-through selling down to an obvious 4hr support flip level at 1223.33. The zone between these two areas is likely free of any demand, since if one takes a look back in history (between this zone), a tail seen at 1227.15 should jump out at you and shout: ‘CONSUMED, READY FOR LOWER PRICES!’
We will only allocate a price action confirmation buy level above the aforementioned 4hr support flip level at 1224.54, since price could very well continue on south to more distinguishable levels (for levels see above – daily/weekly timeframe analysis).
Pending orders/Price action confirmation levels:
• Areas to watch for buy orders: Pending orders: No pending buy orders are seen in the current market environment. Price action confirmation levels: 1224.54 (Stop loss: Dependent on price action after the level has been confirmed, Take profit level(s): Dependent on approaching price action after the level has been confirmed).
• Areas to watch for sell orders: Pending orders: No pending sell orders are seen in the current market environment. Price action confirmation levels: No price action confirmation sell levels are seen in the current market environment.
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