Daily Timeframe: For anyone who follows our analysis regularly, you may remember we were not comfortable buying this market long term until a close above the major support flip level at 1182.01 was seen. As we can all see, Friday’s trading sessions forced price to close above this level, which has likely confirmed buying strength from the aforementioned weekly decision-point . Let’s see what the 4hr timeframe can offer us.
4hr Timeframe: For anyone who read our analysis regarding gold on Friday, you would likely remember us mentioning to watch for buying opportunities around 1149.42, which as we all can see reacted beautifully and traded right to the take-profit level at 1182.93. We do hope some of our readers were in on this move!!!
Price closed above the 1182.93 level with force, which should not be a surprise since this is practically the same as the major support flip level seen on the . Unfilled buy orders (1183.34) are likely lurking just above this level which in our opinion would be a perfect place to look for longs targeting the 4hr supply area above at 1202.61-1195.82. However, this trade will only be valid as long as price does not touch the 4hr supply area since we would not want added selling pressure against any potential buy trades taken around the 1182.93 level. We would advise watching the 5/3/1 minute timeframes for a lower-timeframe entry around this level, since merely placing a pending buy order could lead to an unnecessary loss, as price could easily slide down towards a 4hr resistance flip level coming in at 1174.33, where once again we would be watching lower-timeframe price action around 1175.75 for an entry long, targeting the aforementioned 4hr supply area.
• Buy orders: 1183.34 (Predicative stop-loss orders seen at: Dependent on how one confirms the level) 1175.75 (Predicative stop-loss orders seen at: Dependent on how one confirms the level).
• Sell orders: N/A (Predicative stop-loss orders seen at: N/A).