1302.5/1307.7 is a tasty area for longs, traders...
XAU/USD (GOLD):
In recent sessions, the H4 candles extended Friday’s losses and crossed paths with lows at 1308.4, bolstered by a stronger US dollar. Bottoming just ahead of daily support at 1307.7, bullion mildly pared losses into the close.
The current daily support, coupled with nearby weekly support at 1302.5: the 2018 yearly opening level, is an area active buyers likely inhabit (yellow zone based on the H4 timeframe). A bounce from here has daily supply to target at 1332.6-1322.3. It may also interest traders to note within the current daily supply zone is a resistance level priced in at 1325.4. Also note how strongly this level capped price last week.
Areas of consideration:
Keeping things simple this morning, the 1302.5/1307.7 area marked on the H4 timeframe is of interest this morning. A H4 bullish candlestick pattern (entry/stop parameters can be defined off of this structure) emerging from this region would, according to our technical studies, be considered a strong buy signal. Arguably, though, many traders will feel the combination of a weekly and daily support is sufficient evidence to trade, without waiting for additional candle confirmation, simply entering and placing stops using the limits of the zone.
In recent sessions, the H4 candles extended Friday’s losses and crossed paths with lows at 1308.4, bolstered by a stronger US dollar. Bottoming just ahead of daily support at 1307.7, bullion mildly pared losses into the close.
The current daily support, coupled with nearby weekly support at 1302.5: the 2018 yearly opening level, is an area active buyers likely inhabit (yellow zone based on the H4 timeframe). A bounce from here has daily supply to target at 1332.6-1322.3. It may also interest traders to note within the current daily supply zone is a resistance level priced in at 1325.4. Also note how strongly this level capped price last week.
Areas of consideration:
Keeping things simple this morning, the 1302.5/1307.7 area marked on the H4 timeframe is of interest this morning. A H4 bullish candlestick pattern (entry/stop parameters can be defined off of this structure) emerging from this region would, according to our technical studies, be considered a strong buy signal. Arguably, though, many traders will feel the combination of a weekly and daily support is sufficient evidence to trade, without waiting for additional candle confirmation, simply entering and placing stops using the limits of the zone.
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