Clash between Technical Buy and Fundamental Selling sentiment
Gold's general overview: Strong and expected recovery throughout yesterday's session almost hitting the Hourly 4 chart #1,720.80 benchmark, in the outcome of yet another higher than expected E.U. opening that is typically Bearish tor Gold (#5 out of #6 sessions). This setup offers me no Medium-term pattern worth entering the market / I will notify if Price-action does something different. DX is on a decline and is loosing value with every Hourly 1 candle, having seemingly reached a #5 - #6 session peak. This configuration continues to be Bearish for Gold as I see a maximum Top within #1,717.80 - #1,727.80, if #1,717.80. If broken I will take measures from there, until then the Sellers re-appear again. With RSI on critical levels and Gold Selling every High, it is Natural to expect an relief and Bullish impulse. Historical resemblance shows that every failed Lower Low extension break (#1,681.80 lately) from February #4, resulted as an #2-session recovery which is later Sold. I will wait for Selling confirmation and make my move since Gold is fully Bearish on Short-term, with DX and Bond notes charts as my main markers at the moment. Regardless, I have no intentions of Buying Gold on Short-term, unless #1,731.80 breaks.
Technical analysis: As expected, Gold is so far holding the #1,717.80 - #1,727.80 belt intact and Hourly 4 chart’s #MA50 is aswell stalling the uptrend. Gold is pricing it’s Higher Low first time after #14 sessions, and it is extending it’s Channel Down range with #1,727.80 as the next Higher Low Resistance. Despite another session of DX Trading without a recovery, Gold is less affected as it continues to be more tied to Bond notes / numbers seen few sessions ago = (Gold # +2.06%), Bond notes (# -2.94%). Note how Gold holds it’s correlation with Bond notes almost on every aspect. Gold is once again used as a safe-haven asset as speculators are keeping the Buying bias alive, as DX and Bond notes aswell are not Trading on gains anymore / also without signs of a recovery, it was Natural to expect Buyers to re-appear with RSI on critical levels pointing to an eminent uptrend. As long as this variance continues, Selling sentiment will be postponed. Buying pressure also comes from the global pullback on equities after the disappointing German PMI data who raise flags for a possible economic slowdown. Especially if the Fundamental announcements later this week also disappoint. I remain Bearish of course on Short-term with my previous levels unchanged, but just to secure my capital and use every opportunity to spot most accurate pattern, I will carefully monitor the markets in order to prevent unexpected scenarios and pick the optimal entry point.
My position: In general, it is a clash between Technical Bullish Flag pattern and Fundamentally / markets uncertainty which can make Investors park their capital into riskier assets from Gold (such as Bond notes) and make Gold loose on Short-term. It is an question which side will prevail. If Gold breaks #1,720.80, next strong Resistance is near #1,731.80 (extension #1,744.80), while on Bearish side, if #1,705.80 is broken, #1,700.80 psychological barrier is next and can result as #1,682.80 extension. I will be ready to Sell Gold if mentioned levels break.
Technical analysis: As expected, Gold is so far holding the #1,717.80 - #1,727.80 belt intact and Hourly 4 chart’s #MA50 is aswell stalling the uptrend. Gold is pricing it’s Higher Low first time after #14 sessions, and it is extending it’s Channel Down range with #1,727.80 as the next Higher Low Resistance. Despite another session of DX Trading without a recovery, Gold is less affected as it continues to be more tied to Bond notes / numbers seen few sessions ago = (Gold # +2.06%), Bond notes (# -2.94%). Note how Gold holds it’s correlation with Bond notes almost on every aspect. Gold is once again used as a safe-haven asset as speculators are keeping the Buying bias alive, as DX and Bond notes aswell are not Trading on gains anymore / also without signs of a recovery, it was Natural to expect Buyers to re-appear with RSI on critical levels pointing to an eminent uptrend. As long as this variance continues, Selling sentiment will be postponed. Buying pressure also comes from the global pullback on equities after the disappointing German PMI data who raise flags for a possible economic slowdown. Especially if the Fundamental announcements later this week also disappoint. I remain Bearish of course on Short-term with my previous levels unchanged, but just to secure my capital and use every opportunity to spot most accurate pattern, I will carefully monitor the markets in order to prevent unexpected scenarios and pick the optimal entry point.
My position: In general, it is a clash between Technical Bullish Flag pattern and Fundamentally / markets uncertainty which can make Investors park their capital into riskier assets from Gold (such as Bond notes) and make Gold loose on Short-term. It is an question which side will prevail. If Gold breaks #1,720.80, next strong Resistance is near #1,731.80 (extension #1,744.80), while on Bearish side, if #1,705.80 is broken, #1,700.80 psychological barrier is next and can result as #1,682.80 extension. I will be ready to Sell Gold if mentioned levels break.
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- Few other un-official channels are not mine, they are copies using my real information (impersonating me and my work / identity) so keep that in mind and beware of those.
