Weekly Timeframe: The weekly timeframe shows that active buying has been seen from the weekly demand area at 1166.8-1195.0, which as a result forced the market up to just below a weekly swap level coming in at 1222.2.
Daily Timeframe: Yesterday’s trading action saw further buying from the daily swap level at 1200.0 (located just above the aforementioned weekly demand area). However, as you can probably see, this buying did not last long as active sellers were seen entering the market around 1219.9, seen just below the aforementioned weekly swap level. It will be interesting to see what the 4hr timeframe has to say about this…
4hr Timeframe: For those who read our previous analysis on Gold, you may recall that we were watching for confirmed longs around the 4hr swap level at 1202.8 (red line). Unfortunately though, we did not manage to log an entry here which was a shame since price rallied just beautifully.
Let’s just quickly recap on what we know about Gold so far. The weekly chart shows that active buying has pushed price up to just below a weekly swap level, admittedly price has not hit this level yet, but all the same, it is close enough to be important! The daily chart shows much the same, the only difference is, support came from a small daily swap level (see above for levels). Therefore, in our opinion, we do not have much in the way of direction coming from the higher timeframes, so where does this leave us on the 4hr chart? Well, one could buy from the 4hr demand area seen at 1200.9-1205.2, but with selling being seen from just below the aforementioned weekly swap level at the moment, we would not really feel comfortable buying here. On the other hand, If we had to buy, we’d prefer to wait until price hit the 4hr demand area below at 1190.0-1197.2, as this area is located just within the aforementioned weekly demand area.
With all of the above taken into consideration, opting to stand on the side lines here may very well be the best path to take for the time being.
Current buy/sell orders:
• Buy orders: Flat (Predicative stop-loss orders seen at: N/A).
• Sell orders: Flat (Predicative stop-loss orders seen at: N/A).
Daily Timeframe: Yesterday’s trading action saw further buying from the daily swap level at 1200.0 (located just above the aforementioned weekly demand area). However, as you can probably see, this buying did not last long as active sellers were seen entering the market around 1219.9, seen just below the aforementioned weekly swap level. It will be interesting to see what the 4hr timeframe has to say about this…
4hr Timeframe: For those who read our previous analysis on Gold, you may recall that we were watching for confirmed longs around the 4hr swap level at 1202.8 (red line). Unfortunately though, we did not manage to log an entry here which was a shame since price rallied just beautifully.
Let’s just quickly recap on what we know about Gold so far. The weekly chart shows that active buying has pushed price up to just below a weekly swap level, admittedly price has not hit this level yet, but all the same, it is close enough to be important! The daily chart shows much the same, the only difference is, support came from a small daily swap level (see above for levels). Therefore, in our opinion, we do not have much in the way of direction coming from the higher timeframes, so where does this leave us on the 4hr chart? Well, one could buy from the 4hr demand area seen at 1200.9-1205.2, but with selling being seen from just below the aforementioned weekly swap level at the moment, we would not really feel comfortable buying here. On the other hand, If we had to buy, we’d prefer to wait until price hit the 4hr demand area below at 1190.0-1197.2, as this area is located just within the aforementioned weekly demand area.
With all of the above taken into consideration, opting to stand on the side lines here may very well be the best path to take for the time being.
Current buy/sell orders:
• Buy orders: Flat (Predicative stop-loss orders seen at: N/A).
• Sell orders: Flat (Predicative stop-loss orders seen at: N/A).
IC Markets is an online forex broker specialized in providing transparent trading solutions to both retail and institutional investors alike. We provide superior execution technology, lower spreads and unrivaled liquidity.