Daily Timeframe: Yesterday’s trading action shows that a rather vicious spike/tail pierced through a small daily swap level coming in at 1200.0. This would usually suggest to us that the path was now clear for further downside, but seeing as price spiked lower into weekly demand (see above), we can only assume at this point it may be a fakeout for higher prices. Let’s see what the 4hr timeframe offers…
4hr Timeframe: Gold , as you can see sold off around the open (1202.6) and consequently hit a 4hr decision-point demand area at 1186.6-1194.3, which, if you remember, was the overall target for any shorts taken from 1217.3. Well done to anyone who stuck with the trade to the end!
In our previous analysis, we also mentioned that the aforementioned 4hr decision-point demand area would in fact be a good place to begin looking for confirmed longs, as this 4hr zone actually represents the upper limits of the aforementioned weekly demand area (see above). As we can all see, a reaction was indeed seen from here, unfortunately though, we were unable to find an entry! However, if we were long, we’d be looking to ride this baby all the way back up to 1217.3. The reason for this is simply because the spike/wick seen marked with a green arrow at 1210.1 has likely consumed most of the major selling opposition around minor 4hr supply at 1212.5-1206.6, which is the only obstacle we see stopping a move towards 1217.3.
Current buy/sell orders:
• Buy orders: Flat (Predicative stop-loss orders seen at: N/A).
• Sell orders: Flat (Predicative stop-loss orders seen at: N/A).