Daily Timeframe: The on the other hand shows that the recent break of weekly supply (see above) has subsequently forced the market into a daily supply area at 1277.1-1261.6 (located just below the aforementioned drop-base-drop weekly supply area).
4hr Timeframe: For anyone who follows our analysis on a regular basis, you may recall us mentioning that we had a pending buy order (1224.3) set just above a 4hr decision-point demand area at 1217.3-1223.4. As we can all see, price never filled this order, which was unfortunate since a nice rally was seen.
This is how we see the Gold markets at the moment, the weekly chart currently shows a little ‘wiggle’ room to move north, while the is currently in fresh supply (see above). The 4hr timeframe as you can see is also in supply at 1271.6-1266.7 (located just within the aforementioned daily supply area). Therefore, with the above taken into consideration, buying is something we would not be comfortable with at the moment. Selling on the other hand may also be a little risky from a risk/reward perspective, as selling at current prices would leave little room for profit with a 4hr swap level looming just below at 1257.1.
In our opinion, opting to stand on the side lines here may be the best path to take, at least until the London markets open later on today, where at which point we’ll reassess Gold’s position.
Current buy/sell levels:
• Buy orders: Flat (Predicative stop-loss orders seen at: N/A).
• Sell orders: Flat (Predicative stop-loss orders seen at: N/A).