On the flip side, daily flow slammed right into the underside of supply drawn from 1273.9-1260.2 (not visible on the weekly chart) on Thursday, which saw follow-through on Friday. This could, as we mentioned in Friday’s report, force the yellow metal to retreat back down to the broken weekly Quasimodo line at 1224.1 sometime this week.
Winding down one more level to the H4 chart, resistance at 1256.2 (housed within the aforementioned daily supply) was brought into the action on Thursday, which saw price enter into a tight phase of consolation on Friday between 1235.0/1238.4. As can be seen from the chart, there is little seen stopping this unit from tumbling lower down to support visible at 1212.2 this week. Therefore, the closest support structure to have on your watch list should be the broken weekly Quasimodo line discussed above at 1224.1 (see above).
Similar to Friday’s report, we see very little opportunity to trade this market right now unless price retreats back up to the above said H4 resistance, or connects with the aforementioned broken weekly Quasimodo line. Therefore, do keep a close eye on both structures during the week as they may provide a nice base in which to look for confirmed entries into this market later on.
Levels to watch/live orders:
• Buys: 1224.1 Tentative – confirmation required (Stop loss: dependent on where one confirms this level).
• Sells: 1256.2 Tentative – confirmation required (Stop loss: dependent on where one confirms this level).