To explain our thoughts regarding this market, we feel it’s best to begin from the top. The weekly candle is now within shouting distance of testing the underside of a drawn from 1307.4-1280.0. Our read on the shows that demand at 1234.6-1244.9 is currently providing this market with support. In the event that bullion continues to be favored here, we may see price shake hands with resistance at 1301.5, seen located relatively deep within the above mentioned weekly .
A break above the H4 supply at 1277.1-1272.4 is something our team is interested in seeing. The reason being is that beyond this barrier, the pathway north on the H4 is clear up to the aforementioned daily resistance. As such, should price retest this boundary as demand (after a close higher) followed by a reasonably sized H4 bull candle, one could look to go long from here targeting the daily level. However, do remain aware that by entering long from here, even with the confirmation of a H4 bull candle, you’re effectively buying directly into a weekly .
Our suggestions: Buying above the current H4 supply is, we agree, a risky trade. The buyers, however, are clearly growing in confidence here, and could potentially push prices up to the daily resistance given the river of space seen beyond current H4 supply area.
Levels to watch/live orders:
• Buys: Watch for a close above the H4 supply at 1277.1-1272.4 and then look to trade any retest seen thereafter (H4 close required prior to pulling the trigger).
• Sells: Flat (Stop loss: N/A).