Daily Timeframe: It was reported in the previous analysis that we should expect the possibility of buying pressure around the 1211.67 level, which as we can all see did happen. At the time of writing, a successful to-the-pip touch has been seen off of a small daily supply area at 1241.95-1235.34 (located just under the weekly decision-point level at 1244.08). If follow-through selling is seen here, we fully expect the 1211.67 level to be consumed, which would likely attract further selling down to a daily Quasimodo at 1187.13, located just within the aforementioned weekly demand area.
4hr Timeframe: It was reported that if price was to break above the 4hr supply area at 1228.46-1223.28, we would likely consider buying. With the recent developments on gold , we have decided not to enter any buy orders just yet. The reasons for this are as follows:
1. Price is trading off of a daily supply area at 1241.95-1235.34, and as most know the usually overrules the 4hr timeframe!
2. It appears, for the time being, that price has faked above the 4hr supply area at 1228.46-1223.28 into yet another fresh 4hr supply area at 1239.37-1233.79 (located within the daily supply area mentioned above), which as I am sure you’ll agree is not a great sign to go long!
For the time being, we are going to patiently watch from the sidelines until more obvious (well obvious to us anyway) price action unfolds.
Pending orders/Price action confirmation levels:
• Areas to watch for buy orders: Pending orders: No pending buy orders are seen in the current market environment. Price action confirmation levels: No price action confirmation buy levels are seen in the current market environment.
• Areas to watch for sell orders: Pending orders: No pending sell orders are seen in the current market environment. Price action confirmation levels: No price action confirmation sell levels are seen in the current market environment.