Rolling a page lower to the , however, we can see that Wednesday’s action closed above a broken daily Quasimodo level at 1121.2, which saw Gold pullback and retest the recently broken supply (now demand) at 1098.6-1108.6 on Friday. Judging by the beautiful-looking buying tail seen printed from this area, and the fact that price likely triggered a boatload of stops above weekly supply, our team, at least from a higher- timeframe perspective, are Gold . Upside targets from this region fall in around the Quasimodo seen at 1156.6.
Down on the H4, Friday’s movement closed the week out deep within H4 supply seen at 1114.8-1118.4, following a bounce from a H4 drawn from 1110.3-1108.0. In this case, buying right now is out of the question for us. Before we’d consider attempting to trade with higher-timeframe flow (see above), price would need to close above the current H4 supply (taking out offers from this area) and pullback to the aforementioned H4 , WITHOUT hitting the H4 Quasimodo above at 1122.8 (as per the black arrows). The reason for why is simply because 1122.8 would be one of our take-profit targets should price trade according to our analysis. Bear in mind, nevertheless, that 1122.8 is only likely going to be the first-take-profit target since as we know from our higher-timeframe analysis (see above in bold), the yellow metal can potentially rally much higher this week.
Levels to watch/live orders:
• Buys: 1110.3-1108.0 Tentative – confirmation required (Stop loss: dependent on where one confirms this area).
• Sells: Flat (Stop loss: N/A).