goldenBear88

Bullish leg near exhaustion - Set of Sells engaged

Short
TVC:GOLD   CFDs on Gold (US$ / OZ)
As discussed on my weekend commentary, I noted that I wasn't so sure about Bullish continuation. Lagging upswing sequence on Hourly 4 chart as the Price-action re-entered the lower Zone of Daily Rectangle, following the #1,931.80 strong Resistance rejection and extending the Selling sequence. This is no cause for alarm nor changing my perspective. I already engaged my set of Sells and as long as Daily chart #MA50 is intact, since I am certain on Gold’s Medium-term trend. If however #1,939.80 breaks, then expect Buying to be completed within #1,980’s belt and only then I’ll revise my Medium-term approach, since if #MA50 gets compromised, Medium-term turns from Bearish to Bullish . If not, I expect Price-action again to point out to a new #1,885.80 Higher Low where I will again contemplate Selling the market towards the #1,832.80 Lower Low extension. At the moment the Price-action is only consolidating on Hourly 1 chart. The Price-action has been struggling to get past the #1,931.80 barrier all session long (E.U. opening) as the September #21 - #23 High and Daily Resistance applies Selling pressure. However, with the Fundamental reports reaction staying flat and Stock markets reversing and still Strong - it is not possible to break to the #1,939.80 High eventually. However, the downside offers more potential as I don't need to wait for the rejection again on early U.S. opening Bell. Unless the trade war escalates down the road, which is a largely unpredictable factor, Gold will engage the decline. Early U.S. session opening delivered just what I was expecting as it is most likely a call for testing the Hourly 4 chart #1,885.80 extension on Medium-term. Price-action is under strong Selling pressure since (as I expected), capital from Gold (safe-haven) will be now parked in riskier assets as Investors are again searching for Medium-term relief. Again, I need to point out that the Bullish confirmation is only complete it Gold closes above #MA50, which hints on new Bullish sequence. The Hourly 4 chart #RSI sequence is identical to the August #31 - September #1 sequence, which after it got broken on the Resistance, resulted into the aggressive decline and call for furthest Selling extension. I don’t doubt that this will be the case now as Gold historically repeats it’s cycles, especially on Monthly fractal. In my opinion Stock markets are they key (essential), if they extend their Bull bias, Gold will follow it’s Technical Selling course. I am holding my Sell orders towards #1,885.80.

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