Daily view: The 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 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).