Daily Timeframe: The previous analysis reported that we believed that the path north is clear up to 1249.45 (located deep within the aforementioned weekly supply area), a daily Quasimodo level, and considering price was dancing around a daily decision-point demand area (1185.97-1203.20) at that time, it seemed like a good area to begin looking for longs. As we can all see, buyers did indeed come into the market here, and rallied prices up to a high of 1223.33, before the sellers showed who was boss and slammed the buyers back down to where price came from. We could interpret this recent move in two ways, it could have been the buyers clearing out the sellers to allow higher prices, or we could see it as selling strength. Nevertheless, let’s take a look on the 4hr timeframe to see what we can find.
4hr Timeframe: The 4hr timeframe tells a slightly different story. Price has indeed reacted nicely off of the 4hr Quasimodo at 1191.81, and pushed price above (blue arrow) a 4hr supply area coming in at 1220.56-1213.26. This is where it gets interesting. Above this 4hr supply area is what we believe to be consumed supply (pink ) i.e. very little selling opposition. Therefore, assuming that the buyers can hold out above 4hr Quasimodo , we could potentially see Gold rally towards 1235.40, a 4hr swap level.
With the new developments seen on Gold , and price currently trading within a daily decision-point demand area, we intend to begin watching the lower-timeframe price structure for a confirmed entry long with our first take-profit target set at 1212.36. And assuming all goes to plan, we intend to take final profits around 1233.83 as per the red arrows.
However, if we manage to find a buy signal here, we WILL KEEP IN MIND THAT PRICE IS TRADING OFF OF WEEKLY SUPPLY at the moment, and heavy selling could be seen at any time. For anyone considering looking for buys here, strict trade management rules are highly recommended. Good luck.
Current buy/sell levels:
• Buy orders: Currently watching for confirmed entries around the 4hr Quasimodo at 1191.81 (Predicative stop-loss orders seen at: dependent on where one confirms this level).
• Sell orders: Flat (Predicative stop-loss orders seen at: N/A).