Daily view: Yesterday’s candle saw Gold aggressively increase in value. The liquidity for this move very likely came from the sell stops taken below the daily demand area at 1178.3-1185.8 on Friday. Assuming that the buyers can continue with this tempo today, its likely prices will challenge the 1216.0 daily swap level.
4hr view: The recent advance took out several 4hr technical barriers - little selling interest was seen in this market until price broke above the 1204.7 number marked in red.
1204.7 is an extremely important level since this is, as far as we can see, the last level of fresh supply until the 1214 (red arrow) area above, which, if you look back to the , you’ll see is located a little below the aforementioned daily swap level. Check out the price action to the left above 1204.7 in the green arc pattern; there’s very clear supply consumption wicks seen at 1209.0/1210.6/1212.2 indicating there’s potential room to move north.
With 1204.7 – the last active supply base potentially consumed now, our team is going to be closely watching the 4hr swap area seen at 1197.9-1193.8 for lower timeframe buying confirmation today. If an entry signal is spotted, we plan to take partial profits at 1204.7 just in case there is any residual supply left over, and finally take off the remaining portion of our position off the table around the 1214 area. The reason for requiring lower timeframe confirmation at this 4hr swap area is simply because price is trading around weekly supply (see above); therefore heavy selling could come into the market at any time.
Current buy/sell orders:
• Buy orders: 1197.9-1193.8 (Predicative stop-loss orders seen at: 1192.8).
• Sell orders: Flat (Predicative stop-loss orders seen at: N/A).