From the weekly chart, the yellow metal has clearly taken on a more bearish tone following the rebound from supply at 1307.4-1280.0, which has the potential to force prices down to support chalked up at 1224.1. In-line with weekly flow, daily action also shows room for this unit to continue driving lower today down to demand given at 1224.6-1238.3.
It came as no surprise to us that the H4 demand at 1237.2-1243.9 bounced yesterday since this area sits on top of the aforementioned daily demand zone. For all that though, we do not expect this barrier to hold out long-term as the more attractive zone is sitting below. H4 demand at 1224.6-1230.8 is not only housed within the extremes of the above said daily demand zone, but it is also bolstered by the weekly support level mentioned above at 1224.1. Due to this, we’re expecting this H4 demand area to hold firm and produce a healthy bounce. However, considering that the weekly level sits just beneath the H4 demand, there is a high probability that a fakeout will take place before buyers step in. That being the case, we would only enter within this zone alongside lower timeframe confirmation i.e. a break of supply or a collection of lower timeframe buying tails around a lower timeframe support etc…
Levels to watch/live orders:
• Buys: 1224.6-1230.8 Tentative – confirmation required (Stop loss: dependent on where one confirms this area).
• Sells: Flat (Stop loss: N/A).
It came as no surprise to us that the H4 demand at 1237.2-1243.9 bounced yesterday since this area sits on top of the aforementioned daily demand zone. For all that though, we do not expect this barrier to hold out long-term as the more attractive zone is sitting below. H4 demand at 1224.6-1230.8 is not only housed within the extremes of the above said daily demand zone, but it is also bolstered by the weekly support level mentioned above at 1224.1. Due to this, we’re expecting this H4 demand area to hold firm and produce a healthy bounce. However, considering that the weekly level sits just beneath the H4 demand, there is a high probability that a fakeout will take place before buyers step in. That being the case, we would only enter within this zone alongside lower timeframe confirmation i.e. a break of supply or a collection of lower timeframe buying tails around a lower timeframe support etc…
Levels to watch/live orders:
• Buys: 1224.6-1230.8 Tentative – confirmation required (Stop loss: dependent on where one confirms this area).
• Sells: Flat (Stop loss: N/A).
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