Despite the bounce seen from just above the 4hr swap (support) level at 1135.1 early on during trade yesterday, Gold tumbled lower going into the London session. Price eventually took out 1135.1 and retested it as resistance, which then saw this market head lower to consume buyers around the 4hr ascending trendline taken from the low 1118.1.
Now, for those of you who trade Harmonics, there is a potential 4hr Bat pattern setting up on the chart as we write. This 4hr Harmonic support completes nicely around a 4hr swap (support) level at 1127.6, which also converges with a 4hr ascending trendline extended from the low 1109.4.
Not only does the path south appear ‘support free’ on the 4hr scale to hit this Harmonic support today, additional supportive pressure is seen from the weekly swap (support) level at 1130.1. Therefore, in our opinion, there is a very good chance of a bounce from here.
Given the above, our objective for today is simple. Watch for price to hit the 1127.6 region and trade this beauty long. Considering the all-round confluence seen at this 4hr Harmonic completion point, we have set a pending buy order at 1128.21, with a stop placed just below at 1123.20.
Levels to watch/ live orders:
• Buys: 1128.21 (Stop loss: 1123.20).
• Sells: Flat (Stop loss: N/A).
Now, for those of you who trade Harmonics, there is a potential 4hr Bat pattern setting up on the chart as we write. This 4hr Harmonic support completes nicely around a 4hr swap (support) level at 1127.6, which also converges with a 4hr ascending trendline extended from the low 1109.4.
Not only does the path south appear ‘support free’ on the 4hr scale to hit this Harmonic support today, additional supportive pressure is seen from the weekly swap (support) level at 1130.1. Therefore, in our opinion, there is a very good chance of a bounce from here.
Given the above, our objective for today is simple. Watch for price to hit the 1127.6 region and trade this beauty long. Considering the all-round confluence seen at this 4hr Harmonic completion point, we have set a pending buy order at 1128.21, with a stop placed just below at 1123.20.
Levels to watch/ live orders:
• Buys: 1128.21 (Stop loss: 1123.20).
• Sells: Flat (Stop loss: N/A).
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