ICmarkets

Technical outlook and review on Gold...

FX:XAUUSD   Gold/U.S. Dollar
278 10 2
Weekly view: From the weekly scale, we can clearly see selling interest forming around weekly supply at 1223.1-1202.6. Assuming that this selling interest continues, we might, just might, see prices challenge the weekly demand area below coming in at 1130.1-1168.6.

Daily view: The daily timeframe on the other hand, shows that price rebounded from a daily demand area at 1178.3-1185.8 yesterday. This area, as far as we can see, remains a key obstacle to a move down towards daily demand seen at 1159.4-1170.8 (located just within the aforementioned weekly demand area).

4hr view: Gold             witnessed a decent-sized rally from 4hr demand coming in at 1183.8-1188.5, which, as you can see, took prices up to a small 4hr supply zone at 1198.9-1197.5. Given that price is currently trading between these two 4hr areas at the moment, we have no interest whatsoever in trading Gold             right now.

In the event that price revisits either of these two areas today, however, one could look to trade. That being said, we would advise caution here and highly recommend waiting for confirming strength to be seen on the lower-timeframe structures before risking capital. Why? Well, the 4hr demand area took a whopping great blow, see how deep price drove into this zone; this move likely consumed a ton of buyers, and as a result has very likely weakened the area. With regards to the small 4hr supply area, granted, this zone was not tested to its extremes; but quite frankly, this area is so small, it’s just begging to be faked/spiked.

Should we see a break below the current 4hr demand sometime today; all eyes will be on the 4hr level below it at 1182.5. Check out how violently price moved from this number, only pro money can do this, thus unfilled buy orders may still remain. A sharp rebound could be seen from here, so pending orders should be placed early. If you choose to wait for confirmation, like us, we’d suggest setting alerts, and if triggered, preparing all the lower timeframes clearly (1/3/5/15/) up on the screen so you can get an accurate read on the strength seen at this level.

A close above the small 4hr supply area on the other hand, will likely open the doors to intraday buying up to at least the high 1204.7. In the event this happens, buying the breakout is not our style; we’d much prefer to wait to see if price can successfully retest this level as support before taking the plunge.

Current buy/sell orders:

• Buy orders: 1183.8-1188.5 (Predicative stop-loss orders seen at: 1183.2) 1182.5 (Predicative stop-loss orders seen at: dependent on where one confirms this level).

• Sell orders: 1198.9-1197.5 (Predicative stop-loss orders seen at: 1199.3).


Hey, thanks a lot for your analysis as always and I am finding the webinars very useful. I'd be interested in you view for Gold and Silver leading into 2016.

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ICmarkets PRO Cryptoelite
2 years ago
Hi Skuffone,

Thanks for the comments, give us a week, and we'll make a post :)

IC Markets
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Cryptoelite PRO ICmarkets
2 years ago
OK thanks. This is what I'm thinking from a Silver point of view for what it is worth
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Cryptoelite PRO Cryptoelite
2 years ago
This one rather
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ashif030
2 years ago
very good analysis....
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Cryptoelite PRO ashif030
2 years ago
Thanks i am a new trader, so very much still learning
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ICmarkets PRO Cryptoelite
2 years ago
Skuffone,

You mainly trade using Harmonics? How are you finding these patterns? We're just beginning to see the power of these setups. Form and structure of price seems to have a lot to do with it.

Skuffone, you're analysis is very thorough. However, why not try deleting a few indicators and focus on price action, sometimes one can over analyse the market.

IC markets
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Cryptoelite PRO ICmarkets
2 years ago
Hi thanks for your comment. You are not the first person to say the focus more on price action, I will think about this in the coming days. I have been taught previously to have a minimum of 3 reasons for a trade, so have got used to using indicators. Btw, I watched your webinar about market structure and drawing trend lines and HS&R levels across multiple time zones, I found it very interesting and I want to add this to my trading charts in time. I actually think I can see value in taking one of your trader development courses. Which would you suggest?

Regarding harmonics I like to use these more as a reference to keep me out of trouble from say shorting in the above example. I don't actually trade the harmonic as I don't know where the take profit would be, but use it to help me trade a potentially powerful trend. If that makes sense...
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Asirco
2 years ago
Thanks a lot for the analysis
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ICmarkets PRO Asirco
2 years ago
You're very welcome Asirco.

Skuffone, sorry for the late reply. With regards to the courses offered, they are actually conducted by Tradeview who are official partners of IC markets. Details of their courses can be found at http://www.tradeview.com.au/

Regards

IC markets
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