ICmarkets

Gold: technical outlook and review...

FX:XAUUSD   Gold / U.S. Dollar
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Weekly Timeframe: The weekly timeframe shows price has dipped below the weekly swap level at 1222.2, which consequently could attract further selling down towards a weekly demand area coming in at 1166.8-1195.0.

Daily Timeframe: The sell off seen yesterday from the daily decision-point supply area at 1245.8-1233.1 forced price to spike just below a daily decision-point demand area coming in at 1204.4-1216.5. This may well be all that’s needed to clear the path south towards a major daily swap level visible at 1182.0 (located relatively deep within the aforementioned weekly demand area).

4hr Timeframe: It should not really come as much of a surprise to you to find that the 4hr demand area at 1204.4-1210.6 has also been broken, considering that its located deep within the aforementioned daily decision-point demand area. Contrary to the daily timeframe however (see above in), the 4hr timeframe shows that if price is indeed going to decline from here, the sellers must consume potential buying opposition from around a 4hr decision-point demand area coming in at 1186.6-1194.3 before Gold             can reach the aforementioned daily swap level.

Therefore, assuming (like the daily timeframe ) that the break below the aforementioned 4hr demand area has likely cleared the path south, we can, as per the 4hr timeframe expect price to likely reach at least the 4hr decision-point demand area at 1186.6-1194.3. With that being said, before price can move that far south, pro money will likely require liquidity in the form of buy orders to sell into. So, they may buy into the sell stops from below the current 4hr demand, thus attracting further buyers into the market, which in turn pro money will begin selling into in small batches until price reaches 1217.3. It would be at this point that we intend to begin watching lower timeframe confirmation to short down towards the aforementioned 4hr decision-point demand area as per the green arrows.

Current buy/sell orders:

• Buy orders: Flat (Predicative stop-loss orders seen at: N/A).

• Sell orders: 1217.3 (Predicative stop-loss orders seen at: dependent on where one confirms this level).

Great study!
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ICmarkets PRO motleifaul
Hi Motleifaul,

Thanks, glad you like it...

IC Markets
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