Daily Timeframe: The recent selling has consequently engulfed a daily decision-point demand area at 1271.9-1281.3, which opened the gates for prices to challenge a small ignored daily Quasimodo level seen at 1249.4 (located just above the aforementioned weekly swap level).
4hr Timeframe: The 4hr timeframe shows that with price the aforementioned daily decision-point demand area, it also took out a smaller 4hr demand area that resided inside at 1271.9-1277.1.
At the time of writing, Gold is trading at an interesting place. Notice how price is currently faking below the low 1254.8 (shown with green arrows); this is very likely consumption taking place here. To put it another way, this is traders potentially getting stopped out who were unaware that an ignored daily Quasimodo level lurked just below. And as such, we still believe price has further to drop .
The green shaded area represents the zone between the two higher-timeframe levels (see above), which from where we’re standing is a fantastic area to be looking for buying opportunities today and possibly into next week. Once/if price reaches here; we intend to watch the 15/30 minute timeframe action to see if the buyers have the strength to consume opposing supply which will in effect be our cue to begin preparing to enter long.
Current buy/sell levels:
• Buy orders: watch for lower-timeframe confirmation between 1240.20/1249.4 (Predicative stop-loss orders seen at: 1239.49).
• Sell orders: Flat (Predicative stop-loss orders seen at: N/A).