goldenBear88

I may enter the market near U.S. session

Short
TVC:GOLD   CFDs on Gold (US$ / OZ)
After excellent Profits on #2 Scalp positions in a row which followed by nice Medium-term Profits (#24$ spread) which makes it #3 in a row Profits regarding July - by remaining on sidelines almost all current week (June #6-9), I will enter the market if #1,822.80 Resistance holds the Price-action. I am beginning to see a similar pattern emerge as Gold’s Price-action is still not stabilized over the current week and will rally today as the Fed introduced new liquidity injection facilities with this week’s announcement. Gold's recent soaring is similar to what happened in #2008. All Metals rebounded when the Federal Reserve announced quantitative easing in November #2008. By my calculations, now is the time to start planing to Sell Gold Short-term, the safe-haven asset, amongst market panic over the impact of the growing Covid-19 outbreak and contemplate Buying on Long-term. Gold has risen lately as investors Buy the safe asset as capital is going away from riskier assets to Gold. Gold's future slip will be similar to what happened in #2008, when Gold also failed to act as a safe-haven asset and fell about #20% due to DX strength and a run into cash. The turning point for Gold in #2008 came when the Federal Reserve announced quantitative easing, at which point Gold began to soar, which was similar to the current scenario. The Federal Reserve announced unprecedented actions to boost the economy amid the Covid-19 pandemic, including unlimited Bond notes-buying and multiple facilities to aid companies and workers. Regarding Short-term, Gold continues to consolidate on the Hourly 1 basis as the #1,821.80 Resistance holds firmly and represents movements near Higher High. Technical pullback on yesterday's high is expected as the Stock markets soaring. The new Ascending Channel on Hourly 4 chart just made it’s Higher High (probable turning point and Bear signal) and is now aiming at a Higher Low around #1,777.80 which is #MA50 on Hourly 4 chart. If Price-action defends the Resistance throughout today’s U.S. session opening Bell, I will engage my set of Sells. Remember, the stronger the rise - the steeper the fall is. Technical background on Daily chart continues to point me to a new Bear wave and with Stock markets Trading on high grounds, I don’t doubt it's signs. The top edge of a Lower High volatility belt continuing to push Gold sideways and could be the case during this session. While this move was likely enough to remove a portion of the Sellers from the market, Gold will unlikely rise anymore. As for downside targets on this scale, I think that Gold is headed to lower Gold levels on Medium-term. #1,821.80 Weekly Resistance won’t be broken without a significant cause, but if it gets broken, it will be a call for #1,835.80 extension. DX pulled back yesterday and with the Bond notes and Stock markets stabilizing, I can see further downside. Like I said yesterday Daily chart turned Bearish, aiming my Targets. Every Buy Position since #1,770’s was a gamble, so that’s why I didn’t contemplated Buying the market. Remember that my analysis is based on Gold spot numbers and not the futures contract. Gold (Xau-Usd on my comments as always) almost hit the Resistance calling for ATH (All Time High), but rebounded strongly as a Safe-haven option against the sharp Sell-off on the Stock markets. Only further Stock market weakness can make the Price-action rise more. If U.S. session delivers what I am waiting for, I will engage my set of Sells. Important: Whenever Gold reached similar highs, it engaged a decline more than #5% recognized as an correction.

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