Recently, however, the buyers and sellers have been seen battling for position around the top of a small weekly demand area at 1170.3-1188.4. Assuming that this zone holds and a rally ensues, we could potentially witness price attack the aforementioned weekly sometime in the next few weeks.
Daily view: Following the rebound from daily demand at 1170.3-1184.0, the buyers appear to be climbing higher, literally using the daily extended from the low 1142.5 as a rope to pull themselves higher. If price continues to appreciate here, we may, in the next few days, see the market connect with a daily supply area seen at 1214.7-1205.5.
4hr view: From this angle, we can see that price is currently chewing on the upper limits of a 4hr swap area at 1191.1-1194.4, which as you can see, forms the upper limit of a 4hr consolidation zone (lower limit is seen below – 4hr demand at 1178.7-1184.6).
Taking into consideration the location of price on the higher timeframe picture (see above), we believe that gold is poised for a breakout north today. In the case that the current 4hr swap area is engulfed, the river north should be somewhat ‘ripple free’ up to at least 1203.2/1205.8. However, for us to be given the ‘green light’ to enter long following a close higher, we’d need to see not only a strong retest of this swap area as demand, but also supporting lower timeframe strength.
Levels to watch/ live orders:
• Buys: Flat (Predicative stop-loss orders seen at: N/A).
• Sells: Flat (Predicative stop-loss orders seen at: N/A).