Turning our attention to the 4hr timeframe, reveals that Gold took a turn for the worst yesterday going into the American open, thus invalidating our previous (see here: http://blog.icmarkets.com/wednesday-21st-october-daily-technical-outlook-and-review/) and driving deep into a swap demand area at 1169.8-1162.5.
Taking the above into consideration, our team has absolutely no interest in entering long from current prices. Where we are interested in buying from today, however, is the demand situated just below at 1154.7-1155.9. Here’s why:
1. Strong-looking 4hr demand.
2. completes just above it at 1156.4.
3. 38.2% Fibonacci support also seen just above 4hr zone at 1158.0.
4. Located deep within the daily swap (demand) base at 1169.8-1154.7.
5. Positioned just below the weekly swap (support) level at 1157.4.
Given these five points, our team has come to a general consensus that placing a pending order just above the aforementioned 4hr demand area at 1156.5 is certainly worth the risk!
Levels to watch/ live orders:
• Buys: 1156.5 (Stop loss: 1149.5).
• Sells: Flat (Stop loss: N/A).