Daily Timeframe: The shows that gold declined in value for the second day running yesterday, which resulted in the 1206.49 level being breached. As per this timeframe, the path south looks to be clear down to around both the daily Quasimodo coming in at 1186.83, and the major daily seen just below at 1182.01. However, before this area is hit, we must be prepared for price to retest the 1206.49 level as resistance, since this area likely holds unfilled sell orders left on the break.
4hr Timeframe: The 4hr timeframe shows that the 4hr support flip level seen at 1204.66 (seen just below the 1206.49 daily level) was recently consumed, and as a consequence formed a small 4hr decision-point supply area seen at 1207.55-1204.04.
In our view (much the same as the daily-timeframe analysis), the path south looks relatively free down to around an extreme 4hr demand area coming in at 1178.86-1188.16, which is if you remember is located around two closely-knitted daily support levels (1182.01/1186.83). This could be a perfect area to look for buying opportunities around the 1189.02 level. Nonetheless, before this area is hit, we feel there is a good chance that either today or sometime early next week price will rally up to collect any unfilled sell orders (1203.74) around the aforementioned 4hr decision-point supply area. This will likely give the big guys their much-needed liquidity to sell into this market.
• Buy orders: 1189.02 (Predicative stop-loss orders seen at: 1177.68).
• Sell orders: 1203.74 (Predicative stop-loss orders seen at: 1208.18).