perspective: Yesterday’s daily session saw the Gold market sell off, which as a result, forced price to collide with a major daily swap (support) level at 1182.00.
4hr timeframe perspective: From the open at 1198.5, as already mentioned above, price sold off down to the aforementioned daily (swap) , leaving very little room for any sort of buying action.
Now, given that the is firmly trading from weekly supply at the moment, and the shows price dancing with daily support (see above), where does this leave us on the 4hr chart? Well, entering long from daily support (with lower timeframe confirmation) could be possible if only for a bounce, since you don’t really want to try and pick a long-term fight with weekly supply.
With regards to selling this metal, our team has come to a general consensus that shorts will only be permissible upon seeing a FIRM close below this daily support.
A close lower would likely do two things for us:
1. Potentially confirm selling strength from the weekly supply area.
2. The path south would then very likely be clear for selling down to the 4hr decision-point demand area at 1169.2-1175.1.
Current buy/sell orders:
• Buy orders: 1182.00 (Predicative stop-loss orders seen at: dependent on where one confirms this level).
• Sell orders: Flat (Predicative stop-loss orders seen at: N/A).