Similar to the EUR - possible longs from weekly support...
Weekly gain/loss: + $21.4
Weekly closing price: 1346.0
Since early July, the yellow metal has been on a tear! Of late, we’ve seen weekly price drive through offers at resistance drawn from 1337.3 (now acting support), potentially opening up the trapdoor north to resistance visible at 1375.5. Also noteworthy is 1375.5 converges nicely with an AB=CD bearish formation (see black arrow), along with room seen for weekly USDX candles to equally push lower to support at 11687/long-term trendline support taken from the low 9322 (remember gold and the US dollar are typically inversely correlated markets).
Before weekly bulls can shake hands with the aforesaid resistance level, however, daily price will need to chomp through offers sited at supply carved from 1367.3-1354.2. The daily bearish selling wick seen from the area, nonetheless, could bring price down to retest the nearby weekly support mentioned above at 1337.3, before serious buyers step in.
A brief look at recent dealings on the H4 timeframe shows Friday’s action tagging resistance at 1356.2 in early European trading, ending the day with a loss. As USDX H4 candles are now seen retesting resistance at 11787, this could, technically speaking, lift the price of gold higher before we reach the aforementioned weekly support, which on the H4 scale you’ll see ties in closely with the 38.2% Fib support at 1334.8 from 1297.8.
Our suggestions: Based on structure, we have absolutely no intention in becoming sellers right now for the following reasons:
• Weekly price free to move up to weekly resistance at 1375.5.
• Yes, there is a daily supply at 1367.3-1354.2 in play, but let’s also remember that nearby sits a weekly support just beneath it at 1337.3.
• H4 USDX is trading from resistance at 11787 – could send the price of gold higher.
We would, however, consider looking at buying from the current weekly support level should price revisit this barrier. We know that by doing so we would effectively be entering long while daily price is selling off from supply, but we feel this may not cause too much of a problem, since the first take-profit target would be the H4 resistance at 1356.2 (essentially the underside of the daily supply).
To be on the safe side though, a trade long from 1337.3 would only be permitted should a reasonably sized H4 bull candle take shape (preferably a full, or near-full-bodied candle). Granted, this will not guarantee a winning trade, but what it will do is show buyer intent from a noted support.
Levels to watch/live orders:
• Buys: 1337.3 region (waiting for a H4 bullish candle to form is advised, stop loss: ideally beyond the candle tail).
• Sells: Flat (stop loss: N/A).
Weekly closing price: 1346.0
Since early July, the yellow metal has been on a tear! Of late, we’ve seen weekly price drive through offers at resistance drawn from 1337.3 (now acting support), potentially opening up the trapdoor north to resistance visible at 1375.5. Also noteworthy is 1375.5 converges nicely with an AB=CD bearish formation (see black arrow), along with room seen for weekly USDX candles to equally push lower to support at 11687/long-term trendline support taken from the low 9322 (remember gold and the US dollar are typically inversely correlated markets).
Before weekly bulls can shake hands with the aforesaid resistance level, however, daily price will need to chomp through offers sited at supply carved from 1367.3-1354.2. The daily bearish selling wick seen from the area, nonetheless, could bring price down to retest the nearby weekly support mentioned above at 1337.3, before serious buyers step in.
A brief look at recent dealings on the H4 timeframe shows Friday’s action tagging resistance at 1356.2 in early European trading, ending the day with a loss. As USDX H4 candles are now seen retesting resistance at 11787, this could, technically speaking, lift the price of gold higher before we reach the aforementioned weekly support, which on the H4 scale you’ll see ties in closely with the 38.2% Fib support at 1334.8 from 1297.8.
Our suggestions: Based on structure, we have absolutely no intention in becoming sellers right now for the following reasons:
• Weekly price free to move up to weekly resistance at 1375.5.
• Yes, there is a daily supply at 1367.3-1354.2 in play, but let’s also remember that nearby sits a weekly support just beneath it at 1337.3.
• H4 USDX is trading from resistance at 11787 – could send the price of gold higher.
We would, however, consider looking at buying from the current weekly support level should price revisit this barrier. We know that by doing so we would effectively be entering long while daily price is selling off from supply, but we feel this may not cause too much of a problem, since the first take-profit target would be the H4 resistance at 1356.2 (essentially the underside of the daily supply).
To be on the safe side though, a trade long from 1337.3 would only be permitted should a reasonably sized H4 bull candle take shape (preferably a full, or near-full-bodied candle). Granted, this will not guarantee a winning trade, but what it will do is show buyer intent from a noted support.
Levels to watch/live orders:
• Buys: 1337.3 region (waiting for a H4 bullish candle to form is advised, stop loss: ideally beyond the candle tail).
• Sells: Flat (stop loss: N/A).
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