We are expecting buying to be seen this week on Gold.
Weekly Timeframe: The weekly timeframe shows price has now entered a long-term weekly demand area seen at 1156.70-1194.45. According to the weekly candle the sellers had taken overall control last week as price closed the week at new lows (1190.85). Our first thought, from looking only at the weekly timeframe is to go long, however let’s see what the lower timeframes have to say first.
Daily Timeframe: Friday’s trading action saw a full-bodied bearish candle form. This - like so many of the USD related pairs was very likely fuelled by the positive NFP numbers. With this in mind, price is now seen trading very close to a daily Quasimodo support level at 1186.83. Traders considering going long around this level may benefit from keeping in mind that a major daily support level lurks just below at 1182.01, and as such we should be prepared for a possible fakeout.
4hr Timeframe: The 4hr timeframe shows that the 4hr supply flip area (1208.18-1204.31) was consumed on Friday, which subsequently saw prices drop like a rock nearly hitting an ‘extreme’ 4hr demand area seen at 1178.86-1188.16. Why is this area extreme? Take a look to the left of current price, this area of demand represents the origin of a huge rally that begun on the 31/12/13 at 1178.86, and for this reason likely indicates active unfilled buy orders are lurking just above around the 1189.24 area.
Assuming a small decline in value does indeed materialize, and fills these unfilled buy orders just above the aforementioned 4hr demand area, we are confident higher prices will follow.
Supporting factors for a long trade:
• Price is currently trading within weekly demand at 1156.70-1194.45.
• The daily timeframe shows a highly confluent buy zone coming in at 1186.83/1182.01 (Quasimodo support level)/daily support level).
Buy/sell levels:
• Buy orders: 1189.24 (Predicative stop-loss orders seen at: 1178.19).
• Sell orders: N/A (Predicative stop-loss orders seen at: N/A).
Daily Timeframe: Friday’s trading action saw a full-bodied bearish candle form. This - like so many of the USD related pairs was very likely fuelled by the positive NFP numbers. With this in mind, price is now seen trading very close to a daily Quasimodo support level at 1186.83. Traders considering going long around this level may benefit from keeping in mind that a major daily support level lurks just below at 1182.01, and as such we should be prepared for a possible fakeout.
4hr Timeframe: The 4hr timeframe shows that the 4hr supply flip area (1208.18-1204.31) was consumed on Friday, which subsequently saw prices drop like a rock nearly hitting an ‘extreme’ 4hr demand area seen at 1178.86-1188.16. Why is this area extreme? Take a look to the left of current price, this area of demand represents the origin of a huge rally that begun on the 31/12/13 at 1178.86, and for this reason likely indicates active unfilled buy orders are lurking just above around the 1189.24 area.
Assuming a small decline in value does indeed materialize, and fills these unfilled buy orders just above the aforementioned 4hr demand area, we are confident higher prices will follow.
Supporting factors for a long trade:
• Price is currently trading within weekly demand at 1156.70-1194.45.
• The daily timeframe shows a highly confluent buy zone coming in at 1186.83/1182.01 (Quasimodo support level)/daily support level).
Buy/sell levels:
• Buy orders: 1189.24 (Predicative stop-loss orders seen at: 1178.19).
• Sell orders: N/A (Predicative stop-loss orders seen at: N/A).
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