Keeping my Buy order / Bullish extension/breakout on the cards

Gold's overview: Gold eventually honored the Fundamental side (Stimulus hopes) and is Trading on a Bullish pattern on the healthy Channel Up. Now this is largely uncharted territory on the Hourly 4 chart. Typically the Channel Up is a pattern of trend continuation, marking a Bottom and turning Bullish on Short-term even though that Weekly chart #MA50 broke for the first time since December #2018. However the larger time-frame of Weekly chart remains Bearish, so again I need to pay attention of potential reversal points and Selling the Top as High (and safely) as I can. Gold was Technically Bearish but Fundamental side prevailed and the result is those Bullish candles which are visible on the charts. Strong Resistance is seen at #1,853.80 while first Support is priced at #1,834.80, which means as long as Support is intact, there are more probabilities for the uptrend. It is important to note that below #1,834.80, there is only #1,817.80 to hold Gold from testing #1,795.80 but again I need to keep in mind that on these Fundamentally driven sessions, Gold can go as far as pressure pushes it so I will not try to Sell current Buying bias, only if strong Support gets invalidated. If #1,853.80 breaks before any of the above happens, I have a bullish breakout as DX turned Bearish again on the Short-term (and remains Bearish on the Medium-term), which is a Bullish development for Gold Medium-term. This uptrend is directly related to the decline on DX but even then the drop on Gold will not be so strong. It seems that Investors who Sold Gold during the current #2-Month drop, closed their positions whenever they heard of Stimulus news. Theoretically it makes Investors take capital off of riskier assets and place it in safe-haven assets such as Gold.


Technical analysis: Gold engaged Buying sequence as I’ve been monitoring it throughout E.U. session, while market closing below the #1,834.80 Support is calling for meltdown. Since the Resistance broke, Gold (Xau-Usd on my commentary as always) set Target for the January High of #1,879.80 as discussed lately, but the Resistance break didn’t offered any conclusions as upside potential seemed limited, even though that DX is on a decline for #2 session row. The Hourly 1 candle though turned Bearish as I have so far a strong rejection on the E.U. session Top (#1,853.80). Hourly 4 chart is still an Channel Up but practically Gold has been Trading sideways on the big scale (#1,835.80 - #1,845.80) since since February #8 (futures too) with Tops being made roughly ever #30-35 sessions so, to rule out Bearish reversal, I will wait for closing today to confirm the uptrend. Below #1,853.80 break, the low-risk high-reward Trade is to Buy as close to Resistance as possible and aim at least for the Hourly 4 - near #1,870.80, however if #1,834.80 gets broken - the Price-action will most likely make a Lower Low Bottom at #1,817.80. It is useful to add here once more that Gold is also rising on the factor that Fed announcement is within few sessions. As long as Gold is below #1,853.80, there are chances for a Bearish breakthrough, below #1,834.80 - #1,830.80 / my Buying outlook is invalidated and I will Sell the market. That Fundamental driven moves can easily reverse, current pattern confirmed it since strong Resistance was broken and DX is on a decline / but Gold was rejected above the pressure point.


My position: I have no other option than to keep operating with my Buy order, as I will add more Buy's if #1,853.80 breaks, calling for #1,870.80 extension. #1,830.80 break (few points below Support) invalidates my pattern. Aggressive Bullish breakout is surely on the cards.