Gold eyes #1,700.80 or less, but still Neutral on Short-term

Gold's general commentary: Gold has entered the #1,730.80- #1,740.80 Profit Taking zone for Investors, which is the first one on current new Selling Wave and as discussed last Week, it would be optimal for Short-term Traders to have pressure points which they will later use, and re-engage only after #1,722.80 breaks (Technically). Fundamentally, Gold is strong Sell option and Buying on such landscape could be disastrous for one’s capital. Powell’s speech this week didn’t brought anything special as the speech was idle without creating more uncertainty on the markets. With the Hourly 4 chart RSI having been rejected at #70.000 on the December #2, the current Selling sequence resembles more and more the last strong rebound of October #29 - November #9. Halfway before it’s Top, this rebound pulled back to test the Hourly 4 chart #MA50, so Technically I can't ignore this possibility before Gold eventually hit the Hourly 1 Support. Mentioned variance could Technically be possible, but with all Fundamental factors, chances of Gold testing the #1,764.80 Resistance are small and almost equal to zero.


Technical analysis: The Price-action is now above the #1,730.80 but not gaining more momentum as the DX is pulling back (with strong side swings). I can't speculate how far or up it can go on this news, only follow it Technically. Gold is approaching again the Higher Low trendline of the Daily chart Rectangle, slightly above my Support which is an ideal Selling point. As discussed, unless #1,750.80 breaks, Price-action within is Neutral and suitable only for sidelines, since gambling on raging markets is not an clever idea. As expected Gold reacted to the Fed aftermath and broke through the upper layer of the Rectangle, but still within Neutral zone. Continue Selling as long as Bond notes are on the rise and DX without a decline. I expect aggressive Support break within #3 sessions with #87.16% chances, statistically: as every #4th week of every Trading Month is a trend setter, I expect current one to reveal a major move. I can’t Sell Gold still as Gold has #4 Supports within #10 points Price-action, until I have clear signal.


My position: As expected the Higher Low zone has been tested and Daily chart Rectangle should be ready to accumulate Sellers again. Since DX is Trading on Lower High zone, Resistance remains #1,750.80 and well known Support is priced at #1,722.80. If Support gets broken before tomorrow’s U.S. session, Gold should engage aggressive decline potentially testing Lower Low extension which will switch Gold from Neutral to Bearish on Short-term. Bond notes are on a relentless rally and any recovery sign will be assisting Gold’s Bearish Short-term. #1,700.80 is the next Short-term Target and final defense of Lower Low extension. With DX breaking the Resistance, slight Bond notes upswing may engage aggressive Selling sequence on Gold and fire up some action as Gold is within #15 point variance for almost #10 sessions. As Gold is within a Rectangle, and visible Triangle on the charts, I will take action and set of Selling orders if #1,722.80 breaks, calling for #1,700.80 psychological barrier test.