Daily view: From this viewpoint, we can see that gold declined in value for a third consecutive day yesterday, consequently pushing gold even deeper into the daily buy zone coming in at 1170.3-1184.0.
4hr view: Gold’s recent collapse saw price slice below the 4hr buy zone at 1175.1-1177.5 (located within the aforementioned daily buy zone), which as a result, forced this market to cross swords with a long-term 4hr swap level seen at 1170.4 (represents the lower limit of the aforementioned daily buy zone). The momentum seen from this 4hr level so far looks genuine, but to buy based on this alone would not be something our team would stamp high probability.
Ultimately, we’re looking for price to consume the newly-formed 4hr supply area at 1180.1-1177.8, as this would likely pave the way north up to the 4hr supply area at 1188.0-1185.5 (an ideal take-profit target). This would not only give us confidence to begin looking for buys on any retrace seen (as per the red arrows), but also likely confirm buying strength from both the daily buy zone and the lower limit of the weekly range (see above). It will be interesting to see how this pans out.
Levels to watch/ live orders:
• Buys: Flat (Stop loss: N/A).
• Sells: Flat (Stop loss: N/A).