Daily Timeframe: It was mentioned in the previous analysis that after the daily decision-point supply area at 1235.51-1222.37 was consumed; we felt that the path north was relatively clear up to a daily Quasimodo coming in at 1249.45 (seen very deep within the aforementioned weekly supply area), which still remains to be the case. Recent trading action has seen Gold market slammed down into a daily decision-point demand area at 1185.97-1203.20, which is exactly where we intend to begin looking for buying opportunities.
4hr Timeframe: The 4hr timeframe shows that buying Gold now off a 4hr Quasimodo at 1191.81 may not be the best path to take, as risk/reward considerations argue against entering long when prices are so close to a 4hr swap area seen at 1199.48-1205.02.
For us to even consider entering long around here, the buyers would have to prove there is strength here by consuming some or most of the sellers within the aforementioned 4hr swap area, then retrace back down towards the 4hr Quasimodo , where we’d watch for price to fake below the low 1190.57. From there we would attempt to ride the train north up to 1235.40, as per the red arrows.
Current buy/sell levels:
• Buy orders: Flat (Predicative stop-loss orders seen at: N/A).
• Sell orders: Flat (Predicative stop-loss orders seen at: N/A).