ICmarkets
Short

Gold currently trading in a nice-looking sell zone!

FX:XAUUSD   Gold/U.S. Dollar
234 3 6
The yellow metal had a rather eventful session yesterday with the ECB announcing it will be cutting rates. Gold             initially stabbed into the extremes of H4 demand coming in at 1237.2-1243.9 and then proceeded to rocket north, surpassing H4 resistance at 1256.2 and just recently connecting with H4 supply painted at 1285.5-1278.5.

Despite the aggressive rally north yesterday, price is now considered overbought in our opinion. Here’s why: Over on the weekly chart, it’s clear to see that price is now nibbling at the underside of a very strong-looking supply zone at 1307.4-1280.0. Not only this, but down on the daily chart this market is also responding to a clear resistance hurdle coming in at 1283.4.

Therefore, our plan of attack for this market today is relatively simple. Look for a lower timeframe sell setup (preferably between the M15 to M60) within the current H4 supply to jump in short, targeting H4 support at 1256.2 first and foremost.

Levels to watch/live orders:

• Buys: Flat (Stop loss: N/A).
• Sells: 1285.5-1278.5 Tentative – confirmation required (Stop loss: dependent on where one confirms this area).
hmmmpf
8 months ago
It seems to me that gold will retest the 1307 weekly resistance level. With development on eurusd, thats very possible. But nice work
Reply
ICmarkets PRO hmmmpf
8 months ago
Thanks for your input... Much appreciated!
Reply
Fibtree
8 months ago
awesome again, you nailed the sell and the buy
Reply
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