Daily Timeframe: The recent ascent on Gold has pushed price up to 1170.5, an ignored daily Quasimodo line. In the event that price closes above this hurdle today, this will likely clear the path north for further buying towards a major daily swap level coming in at 1182.0. Let’s see what the 4hr timeframe makes of this…
4hr Timeframe: The 4hr timeframe shows that price has likely consumed a 4hr supply area coming in at 1175.2-1171.1 (seen just above the aforementioned ignored daily Quasimodo level), which has, as far as we can see, potentially paved the way north for the market to test the major daily swap level mentioned above at 1182.00. That being the case, it seems we may have missed the opportunity to enter long, as the train looks as though it has departed without us from a minor 4hr swap level seen at 1159.6.
That being the case, selling from 1182.00 could be our next port of call. This is a valid shorting zone as long as confirmation is seen from the lower timeframes. Confirmation is needed, in our opinion, for two reasons. Firstly, price could fake higher here to test the low 1188.3 as resistance, and secondly, one needs to remain aware that by selling here, you could be potentially be shorting into higher timeframe weekly buyers. So remain vigilant!
Current buy/sell orders:
• Buy orders: Flat (Predicative stop-loss orders seen at: N/A).
• Sell orders: 1182.0 (Predicative stop-loss orders seen at: N/A).