Daily Timeframe: Recent trading action on the shows that price engulfed a daily supply area at 1277.1-1261.6, which as a result likely cleared the path north up to a small daily supply area seen at 1296.3-1289.2 (located deep within the weekly supply area mentioned above at 1296.3-1269.3).
4hr Timeframe: From a technical perspective, the Gold market has moved very little since the open (1279.3). Price only just recently woke up and spiked south to a 4hr swap area seen at 1271.6-1266.7, where buying interest is clearly evident.
Let’s just quickly recap here, so that we’re all on the same page. The shows price in supply, while the suggests price could likely rally higher into this weekly supply area (see above). However, for the time being, risk/reward parameters argue against entering long around the aforementioned 4hr swap area with a 4hr swap level looming just above at 1280.37. Selling on the other hand is something we’d only be interested in if price broke below the 4hr swap area, as this would likely clear the path south towards a nice-looking 4hr swap level seen at 1257.1.
Price action is clear on Gold at the moment; the only problem is we see very little opportunity to participate at the moment. Therefore, standing on the sidelines here may be the best path to take until more opportune price action presents itself.
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).