Weekly closing price: 1273.7
Weekly opening price: 1273.7
Weekly view: The gold market enjoyed another successful rally north last week, gaining close to $30 in value! In consequence, the yellow metal is now trading within shouting distance of a drawn from 1307.4-1280.0. This area has been visited twice already and each time has responded with relatively aggressive selling.
Daily view: In-line with weekly movement, the metal is seen trading from supply given at 1288.5-1272.9, which could potentially force this unit to retest 1262.2 sometime this week. In the event that gold breaks above the current supply, however, the next FRESH line is not seen until 1333.4 – a Quasimodo resistance which sits just above a weekly Quasimodo resistance at 1331.0.
H4 view: With stocks dropping lower on Friday the shiny metal was clearly favored among investors, consequently pushing prices up to within touching distance of supply at 1282.1-1278.5. Given that this supply is lodged within both weekly and daily supply zones (see above), it is an absolutely fantastic zone to be looking to sell!
Our suggestions: For those who read Friday’s report (see link below) you may recall our team mentioning that we placed a pending sell order at 1277.9 (just below the current H4 supply) with set stop above at 1283.0. As can be seen from the chart, our order was triggered late Friday and is still running as we write. Ultimately, we’re looking to hold this position until at least H4 demand at 1264.4-1266.5, where we will likely liquidate 50% of our position and reduce risk to breakeven.