As gold is dealing around what has been a key level $1586 (+/1) over the last few days, I am following up on yesterday´s post in which I laid out several scenarios.-
b.1) Buyers keep control of the situation and seek to bring price into higher value areas (clusters) – $1600 is particular appealing rounded number, which is right in the middle of the bigger area contained between $1601-$1599 – Specifically, I´m keying $1603, followed by $1608-$1610 & $1611-$1612.
Above, $1615, $1618 & $1620 are the levels I´ll be paying attention to.
b.2) I will tend to favor more upside, unless I see a reactive an intense response by part of sellers. In that event, I will be looking at $1586, which happens to be the top of the balance area developed during last week. If sellers decide to act, we could be in presence of an analogue move to what we had back on Friday (after NFP), but in a different direction.
So far, b.1 hasn´t played out. Buyers were not able to surpass the $1600, which is an important number. The break of it, would (eventually) attract more buyers.
Now, gold is currently trading between b.2 and b.3.- Price went as far as $1599 (too close, but not enough), only to retrace into the top of the balance area developed over the first week of Feb.-
What I am looking here is if this area will attract buyers, or not and how many (in terms of buying pressure) of them will participate, if any.-
I will develop further in a later post, since currently gold is the middle of both scenarios and I would like to see how price action follows up and have a clearer picture.-
At last, $1592 is a key price point.- I am working with the idea of buyers pressuring in this level might open the possibility of challenging $1600.-
In that sense, $1583-$1580 might provide some buying response (I´ll be much more inclined into the short side if it doesn´t happen), followed by $1579-$1576