ICmarkets
Long

Weekly technical outlook and review on Gold...

FX:XAUUSD   Gold / U.S. Dollar
329 0 3
Weekly timeframe perspective: The weekly timeframe shows that the market ended the week closing around the underside of a small weekly decision-point supply area (1223.1-1202.6) at 1202.7. Could this possibly mean that the sellers have been weakened here? Let’s take a look on the lower timeframes to see what we can find…

Daily timeframe perspective: From this angle, we can see that support came into the market on Wednesday from a major daily swap level seen at 1182.0, which is, from a technical standpoint, the reason why the market rallied on Thursday. This surge of buying brought prices up to within a stone’s throw away from hitting the daily supply area seen at 1223.1-1213.0 (located deep within the weekly decision-point supply area at 1223.1-1202.6). For us to have confidence in the weekly decision-point supply area mentioned above, a close below the aforementioned daily swap level would need to be seen.

4hr timeframe perspective: Friday’s sessions saw price grind lower from 1208.5 down to just above the 4hr decision-point demand area seen at 1191.3-1194.1, which, as you can see, also boasts trendline convergence from the low 1142.5.

Given that price is still in an overall downtrend, and is confined to weekly supply on the weekly timeframe (see above), our team naturally favors shorts at the moment. However, the only obvious resistance we see on the 4hr timeframe at the moment is positioned quite high at 1223.1-1219.0. In that case, could one look to buy this pair? We believe so. Let’s not forget though, that by buying Gold             we will be effectively trading against weekly supply, but, here’s the kicker - take another look at the daily chart , can you see how there is still ROOM to move north at least until the daily supply area seen at 1223.1-1213, this is potentially tradable.

That being the case, the only two places that we would consider areas worthy of buying from on the 4hr scale would be the aforementioned 4hr decision-point demand area, which has yet to be hit, and the 4hr demand area seen below it at 1180.7-1187.3. Any longs taken from either zone will need to have extremely attractive lower timeframe confirmation - remember guys we’re only looking to trail any long trades up to the lower base aforementioned daily supply area, no further!

Trading volume is expected to be very low today. If you do trade, we would advise keeping your positions very small, and only shooting for small intraday targets.

Current buy/sell orders:

• Buy orders: 1191.3-1194.1 (Predicative stop-loss orders seen at: 1190.2) 1180.7-1187.3 (Predicative stop-loss orders seen at: 1179.7).

• Sell orders: Flat (Predicative stop-loss orders seen at: N/A).
Ideas Scripts Chart
United States
United Kingdom
India
España
France
Italia
Polska
Brasil
Россия
Türkiye
Indonesia
日本
한국
Home Stock Screener Forex Signal Finder Economic Calendar How It Works Chart Features House Rules Moderators For the WEB Widgets Stock Charting Library Priority Support Feature Request Blog & News FAQ Help & Wiki Twitter
Private Messages Chat Ideas Published Followers Following Priority Support Public Profile Profile Settings Account and Billing Sign Out