Potential shorts at 1280.4...
After dropping sharply over the past couple of days, the yellow metal found a floor of bids around August’s opening level at 1269.3 yesterday, which happened to converge with a H4 channel support chalked in from the low 1323.0. Providing that the bulls remain in control here, the next upside target on the H4 chart can be seen at resistance drawn from 1280.4.
In spite of the recent upside move, weekly action shows little support in view until we reach channel support extended from the low 1122.8. What’s more, daily price is now seen chomping at the underside of a resistance area pegged at 1275.3-1291.2.
Suggestions: In view of the strong downtrend the metal is in right now, as well as weekly and daily price both suggesting further selling could be on the cards, we would be surprised to see H4 price trade beyond the channel resistance extended from the high 1357.5. With that being the case, an ideal sell, for us at least, would be at the yellow marker on the H4 timeframe where the noted resistance and channel resistance merge.
Levels to watch/live orders:
• Buys: Flat (stop loss: N/A).
• Sells: 1280.4 region (waiting for a reasonably sized H4 bearish candle to form – preferably a full, or near-full-bodied candle – following the retest is advised, stop loss: ideally beyond the candle’s wick).
In spite of the recent upside move, weekly action shows little support in view until we reach channel support extended from the low 1122.8. What’s more, daily price is now seen chomping at the underside of a resistance area pegged at 1275.3-1291.2.
Suggestions: In view of the strong downtrend the metal is in right now, as well as weekly and daily price both suggesting further selling could be on the cards, we would be surprised to see H4 price trade beyond the channel resistance extended from the high 1357.5. With that being the case, an ideal sell, for us at least, would be at the yellow marker on the H4 timeframe where the noted resistance and channel resistance merge.
Levels to watch/live orders:
• Buys: Flat (stop loss: N/A).
• Sells: 1280.4 region (waiting for a reasonably sized H4 bearish candle to form – preferably a full, or near-full-bodied candle – following the retest is advised, stop loss: ideally beyond the candle’s wick).
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