goldenBear88

Keeping my second set of Sells / Bearish Gold

Short
TVC:GOLD   CFDs on Gold (US$ / OZ)
It should be no surprise that Gold is under strong Selling pressure as DX broken Higher Low Resistance as I comfortably hold my second set of Sells (After closing first set with excellent Profits). Gold almost tested #1,662.80 Lower High Support on yesterdays session, which is the 3rd Support on Hourly 4 chart. What keeps Gold on Selling pressure is US trade settlement and general reaction to uncertainty on the markets - Investors are doing what I was waiting for - withdrawing capital from Gold into more riskier assets. Main Support (#1,680.80) is broken on multiple occasions and the next Technical stop should be #1,647.80 within #2 sessions. Bullish reversal is only possible if #1,702.80 Resistance breaks - Personally, I give less chances to that, by my calculation, only #14%. Also what is worth noting is that Gold erased last week’s gains and is marginally near the #1,657.80 strong Support on the Hourly 4 chart as, despite the dip on Stocks, DX is soaring on a positive US trade deal environment and Oil collapse. Technically, Daily chart is turned from Neutral to Bearish as I still don’t see recover signs on Gold. There is good possibility for #45$ Intra-day dip as US session approaches if Stocks make a Resistance test, since Stocks are the sole reason behind ranged Gold on E.U. opening. If that’s the case, I will carefully wait for opportunity to add more Sells. Regarding current session, US opening delivered decent dip yesterday as #1,680.80 Support is crossed as an call for Selling continuation. Hourly 4 chart needs to recover current losses otherwise should drop further. The medium term charts Daily and Weekly still point to a lower Price-action which reveals underlying Bearish trend and this is why I will keep Selling the market on the longer run. A relative risk factor is off the markets and that’s why Stocks should rise and add more Selling pressure on Gold. Also, as long as Bonds are trading on Support zone, their Channel Down will be intact and will progressively apply Selling pressure on Gold, since Stocks should attract risk seeking capital from the Currency’s. I do expect however the currency speculators to push DX as High as they can ahead of this week’s Fundamental events in order to secure a more comfortable Sell entry in late session near the weekend. Gold is both Technically and Fundamentally equipped for Bearish continuation. I see no reason to make a strategy shift or change my outlook. I still give more probabilities to the downside with #1,647.80 as a first Target and #1,610.80 in extension.

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