Gold prices, once again, took on more of a subdued tone on Monday, despite the US dollar printing a healthy advance. Ranging a little over $7, the yellow metal remains capped around the underside of a daily supply at 1334.3-1323.3, and has been since the 4th January. Why are the bears finding it difficult to pursue lower prices from here? Could it be the fact that weekly price displays room to advance as far north as the weekly resistance level coming in at 1337.3, or the threat of daily support lurking nearby at 1308.4?
Market direction:
The H4 demand area seen at 1301.6-1307.5 warrants attention, due to it being formed on the break of a H4 Quasimodo resistance logged at 1304.4 as well as housing both the daily support mentioned above at 1308.4, and the 2018 yearly opening level marked on the weekly timeframe at 1302.5. With weekly price showing promise at least until 1337.3, a long from the noted H4 demand could be an option. Yes, by entering into a buy trade from here, you’d effectively be buying from daily sellers. However, given the fact that the H4 zone is reinforced by a daily support, the odds of a rotation from the H4 demand area is high, in our opinion. In regard to near-term take-profit targets, it is difficult to judge since H4 price has yet to complete its approach.
Market direction:
The H4 demand area seen at 1301.6-1307.5 warrants attention, due to it being formed on the break of a H4 Quasimodo resistance logged at 1304.4 as well as housing both the daily support mentioned above at 1308.4, and the 2018 yearly opening level marked on the weekly timeframe at 1302.5. With weekly price showing promise at least until 1337.3, a long from the noted H4 demand could be an option. Yes, by entering into a buy trade from here, you’d effectively be buying from daily sellers. However, given the fact that the H4 zone is reinforced by a daily support, the odds of a rotation from the H4 demand area is high, in our opinion. In regard to near-term take-profit targets, it is difficult to judge since H4 price has yet to complete its approach.
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