ICmarkets

Interesting price action seen on Gold.

FX:XAUUSD   Gold Spot / U.S. Dollar
0
Weekly Timeframe: The weekly timeframe shows that Gold is currently being bought against the U.S Dollar, and as a result price is now trading just below a fresh weekly supply area coming in at 1255.20-1226.18.

Daily timeframe: The daily timeframe shows that the recent buying momentum has forced prices above a daily decision-point supply area at 1235.51-1222.37 (located just within the aforementioned weekly supply area), which resulted in price forming two potential selling wicks. Yesterday saw the sellers attempt to trade lower, but price however was quickly rejected by the buyers creating a buying tail (1215.78). This gives us confidence that the two aforementioned wicks were likely consumption wicks and that a move higher may ensue, which sounds a dangerous thing to say considering price is currently trading below weekly supply at the moment (see above). It will be interesting to see what the 4hr timeframe has to say about this.

4hr Timeframe: The recent buying on Gold was seen from a 4hr swap area coming in at 1221.13-1215.21. As we just mentioned we feel that a higher move may be seen, and even after looking at the 4hr timeframe we still stand by that comment. The reasons why area as follows:

1. Take a look where price is trading now, just above is what we believe to be consumed supply marked with red arrows, check out the supply consumption wicks seen at 1232.60/1234.58. This indicates that the path is relatively free for further buying.

2. And two, take a look above 1235. 40 , and see that beautiful-looking fresh 4hr supply area at 1244.52-1240.15. This area is begging to be traded! What makes this so, is pro money will likely look at faking above 1235. 40 into this 4hr supply area to gather liquidity for a move south.

With the above taken into consideration, we have placed a pending sell order at 1239.32 with a stop set just above at 1246.67.

Current buy/sell levels:

• Buy orders: Flat (Predicative stop-loss orders seen at: N/A).

• Sell orders: 1239.32 (Predicative stop-loss orders seen at: 1246.67).



Get real-time trading updates at our official Telegram group : https://t.me/ICMarketsroom