Daily Timeframe: It was mentioned in the previous analysis that the path south was likely clear down towards an area of daily support at 1149.42, and as we can all see, it clearly was, and boy did it react beautifully! The aggressive buying seen yesterday pushed prices up to just below a daily supply area coming in at 1235.51-1222.37 (seen just below the weekly 1244.08 level) where selling interest is seen coming in to the market at the moment.
4hr Timeframe: For anyone who follows our analysis on a regular basis, you may recall us mentioning to watch for confirmed buying opportunities on the lower timeframes around the 1156.07 mark, just above a 4hr demand area coming in at 1146.76-1154.80. However hard we tried, we just could not find an entry around this point which was absolutely devastating when we saw price rocket towards a 4hr supply area at 1226.52-1220.97! Well done to anyone who entered long around this area!
It’s now ‘decision time’ on gold as price is firmly trading around supply, which can be seen right from the weekly down to the 4hr timeframe (see above). If the buyers can hold out above a current 4hr resistance swap level seen at 1202.83, then this will likely be a good sign that the buyers will mount another attack on the 4hr supply area mentioned above.
A close below here on the other hand would be our cue to begin looking for shorting opportunities on the retest of 1202.83 around the 1201.84 mark. In the event that the sellers can hold prices lower here, follow-through selling would likely then be seen down towards a support flip level seen from the at 1182.01, which would incidentally be our first take-profit target (as per the blue arrows).
• Buy orders: Flat (Predicative stop-loss orders seen at: N/A).
• Sell orders: 1201.84 (Predicative stop-loss orders seen at: Dependent on where one confirms this level).