#18 Profits in a row / Lower Low strategy - chart explanation
I have closed my yesterday's set of Sells (#1,887.80 - #1,865.80) with huge Profits, which represents #18 Profits in a row and only #2 Stop-loss hits regarding August-September. As discussed on my yesterday's post:" Since Lower Low is broken, I will pursue again Lower targets with my new #1,864.80 Target."
Chart explanation: Allow me to explain in details the Short-term decision to extend my Selling sequence. If you look closely the values on my chart, it is visible that Gold (always repeats it’s cycles) is always breaking the Lower Low #3 times and then set’s up for the Bull rally. Since August #12-26, Gold touched #3 times Lower Low and then engaged the recovery. Same scenario is visible since September #2-9. Current situation: Lower Low was broken on yesterday’s session (September #22), as scenario is the same - #2nd Lower Low is broken on yesterday's session (#1,864.80), so it is Natural to expect next Lower Low test #1,832.80 (my Personal estimation: within #8 sessions).
Gold resumed the decline and as expected, tested the Lower Low of #1,864.80 and still not fully rejected (however, if market closes below #1,864.80, Selling sequence will continue without Buying response/consolidation) - needless to mention, movement is within my models and Price-action is Trading on expected values. Regarding the correlations, excellent Usd-Jpy related developments as Gold is currently showing nothing but Bearish signs. Along with Stock markets Bull candles, personally I think Gold is equipped to dip more than #37$ further within #5 sessions horizon. I expect Natural consolidation ahead and Buying opportunity towards the #1,877.80 (former Support always becomes the Resistance and same another way around/broken Resistance becomes the Support). I believe that crossing the Resistance level on Stock markets was the necessary Sell confirmation on Gold. It is important to note that DX is once again nicely correlated with Gold again (DX # +0.27% - Gold # -2.00%), and is a sign that DX enters a phase where it could be monitored (along with Usd-Jpy, Stock markets and Bond notes) as an correlating asset. On a wider scale (timeframe) this development brings attention back to September #21 scenario, where the market pierced thru the Support, touched Lower Low and next session were Trading on decent gains, so that could be the case on tomorrow’s session E.U. opening. Price-action could set in motion #1,877.80 Resistance, and possible rejection will be calling again for Medium-term rebound to #1,832.80 and then again, have Buying accumulation towards the Higher Low. Pullback on Gold to Lower levels should come as no Technical surprise. With Stock markets rising miraculously, Gold is bound to test it's own Low’s. Tomorrow’s Neutral Daily Price-action should typically work in favor of the Support, keeping the range intact. Historical candle regressions on Weekly chart show a resemblance of the current candle series with the July #03 - September #25 cohesion. This suggests that, on Long-term, Gold should test #1,750.80, maximum till end of October. This is of course vastly speculative with all the current Technicals and Fundamentals involved, but as long as Congress is far away from launching new Monetary stimulus which can guide Gold into a rally, Gold is a Selling option.
Chart explanation: Allow me to explain in details the Short-term decision to extend my Selling sequence. If you look closely the values on my chart, it is visible that Gold (always repeats it’s cycles) is always breaking the Lower Low #3 times and then set’s up for the Bull rally. Since August #12-26, Gold touched #3 times Lower Low and then engaged the recovery. Same scenario is visible since September #2-9. Current situation: Lower Low was broken on yesterday’s session (September #22), as scenario is the same - #2nd Lower Low is broken on yesterday's session (#1,864.80), so it is Natural to expect next Lower Low test #1,832.80 (my Personal estimation: within #8 sessions).
Gold resumed the decline and as expected, tested the Lower Low of #1,864.80 and still not fully rejected (however, if market closes below #1,864.80, Selling sequence will continue without Buying response/consolidation) - needless to mention, movement is within my models and Price-action is Trading on expected values. Regarding the correlations, excellent Usd-Jpy related developments as Gold is currently showing nothing but Bearish signs. Along with Stock markets Bull candles, personally I think Gold is equipped to dip more than #37$ further within #5 sessions horizon. I expect Natural consolidation ahead and Buying opportunity towards the #1,877.80 (former Support always becomes the Resistance and same another way around/broken Resistance becomes the Support). I believe that crossing the Resistance level on Stock markets was the necessary Sell confirmation on Gold. It is important to note that DX is once again nicely correlated with Gold again (DX # +0.27% - Gold # -2.00%), and is a sign that DX enters a phase where it could be monitored (along with Usd-Jpy, Stock markets and Bond notes) as an correlating asset. On a wider scale (timeframe) this development brings attention back to September #21 scenario, where the market pierced thru the Support, touched Lower Low and next session were Trading on decent gains, so that could be the case on tomorrow’s session E.U. opening. Price-action could set in motion #1,877.80 Resistance, and possible rejection will be calling again for Medium-term rebound to #1,832.80 and then again, have Buying accumulation towards the Higher Low. Pullback on Gold to Lower levels should come as no Technical surprise. With Stock markets rising miraculously, Gold is bound to test it's own Low’s. Tomorrow’s Neutral Daily Price-action should typically work in favor of the Support, keeping the range intact. Historical candle regressions on Weekly chart show a resemblance of the current candle series with the July #03 - September #25 cohesion. This suggests that, on Long-term, Gold should test #1,750.80, maximum till end of October. This is of course vastly speculative with all the current Technicals and Fundamentals involved, but as long as Congress is far away from launching new Monetary stimulus which can guide Gold into a rally, Gold is a Selling option.
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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.
- 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.
