Gold is looking to test #1,670.80 extension / Bearish Gold
As discussed on my yesterday's commentary:" My position: After yesterday's session Profits, I am comfortably on sidelines waiting for #1,705.80 Support break, and when/if broken, it will provide me a fine Selling confirmation which I won't hesitate to use and pursue #1,675.80 configuration with my Selling orders." / I have closed my Selling order with excellent Profits (#1,705.80 - #1,691.80) and will engage Selling order when I have confirmation, near #1,688.80 calling for #1,670.80 Lower Low extension. Congrat's for Traders who followed my call!
Gold's general overview: Gold engaged the decline and at the same time DX has made a new #1-week High, and the fact that Gold still didn't follow with a Lower Low (#1,670.80 or less), leads me to believe that it is being used as a hedge against the current sharp Resistance break on Bond notes (my main correlation and point of interests at the moment) is making Investors draw capital from Gold to Treasury Yields again, preventing steeper fall on Bond notes and defending the #1,710’s Resistance level on Gold comfortably. Same configuration suggests that as long as Bond notes are Trading on High’s, while DX engages the Bullish Price-action, Gold may experience an aggressive decline. In any case the Hourly 4 and Daily chart Technicals suggest that if #1,688.80 breaks, I should see #1,670.80 next and #1,658.80 extension. By my estimations, #1,660.80 - #1,670.80 is Gold’s Short-term stabilization zone and could attract Buyers at that point, but again the Profits on my Selling order will be decent as I won’t mind Buying pressure on that vicinity.
Technical analysis: Gold is testing the #1,688.80 - #1,691.80 Support Zone, which has been holding for some time now. DX is also on it’s #1-Month Resistance level. However the U.S. Bond notes have resumed their spiral uptrend and as competitive assets, they are what's most likely keeping Gold below the #1,700.80 psychological barrier. I mentioned the importance of the Weekly chart #MA50 as an switch from Bearish to Bullish Medium-term (which is far away on almost more than #100 points from here), but I want to focus on the Daily chart where evident Death Cross is formed which supports the downtrend and should be used as an catalyst. I expect #1,670.80 test and typical Target of configuration break includes #1,658.80 or less within stabilization area.
Gold's Bearish outlook: No matter the perspective, it is the Bond notes that is making capital that was 'parked' on Gold, now flee to Bond notes as an well known asset which Investors use. Since February #27, #2019 though, every Daily chart Channel Down has held the Resistance that was made when then MACD had already shown the divergence, and then initiated a very aggressive rally (exception only on March). This actually means that on a #1-Month horizon, Gold is close to the most optimal Selling entry for a #1,600.80 test. My estimations show that #1,650.80 will be tested within first #2 Weeks of March, while I expect #1,600.80 throughout April-May fractal. Strong rejection on the #1,724.80 following Powell’s speech aftermath. The rejection has so far delivered a pullback on both Hourly 1 Support and Hourly 4 Lower Low extension again, zone that in my view plays the role of the Pivot within the Support and Resistance. DX is skyrocketing (# +0.35%), while U.S. Bond notes are on a mere (# +0.10%), indicating that Gold should continue the aggressive decline. I am expecting #1,670.80 within #2 sessions.
My position: I have closed my Selling order on #1,691.80 for security reasons and will engage again set of Selling orders when #1,688.80 break, calling for #1,670.80 extension.
Gold's general overview: Gold engaged the decline and at the same time DX has made a new #1-week High, and the fact that Gold still didn't follow with a Lower Low (#1,670.80 or less), leads me to believe that it is being used as a hedge against the current sharp Resistance break on Bond notes (my main correlation and point of interests at the moment) is making Investors draw capital from Gold to Treasury Yields again, preventing steeper fall on Bond notes and defending the #1,710’s Resistance level on Gold comfortably. Same configuration suggests that as long as Bond notes are Trading on High’s, while DX engages the Bullish Price-action, Gold may experience an aggressive decline. In any case the Hourly 4 and Daily chart Technicals suggest that if #1,688.80 breaks, I should see #1,670.80 next and #1,658.80 extension. By my estimations, #1,660.80 - #1,670.80 is Gold’s Short-term stabilization zone and could attract Buyers at that point, but again the Profits on my Selling order will be decent as I won’t mind Buying pressure on that vicinity.
Technical analysis: Gold is testing the #1,688.80 - #1,691.80 Support Zone, which has been holding for some time now. DX is also on it’s #1-Month Resistance level. However the U.S. Bond notes have resumed their spiral uptrend and as competitive assets, they are what's most likely keeping Gold below the #1,700.80 psychological barrier. I mentioned the importance of the Weekly chart #MA50 as an switch from Bearish to Bullish Medium-term (which is far away on almost more than #100 points from here), but I want to focus on the Daily chart where evident Death Cross is formed which supports the downtrend and should be used as an catalyst. I expect #1,670.80 test and typical Target of configuration break includes #1,658.80 or less within stabilization area.
Gold's Bearish outlook: No matter the perspective, it is the Bond notes that is making capital that was 'parked' on Gold, now flee to Bond notes as an well known asset which Investors use. Since February #27, #2019 though, every Daily chart Channel Down has held the Resistance that was made when then MACD had already shown the divergence, and then initiated a very aggressive rally (exception only on March). This actually means that on a #1-Month horizon, Gold is close to the most optimal Selling entry for a #1,600.80 test. My estimations show that #1,650.80 will be tested within first #2 Weeks of March, while I expect #1,600.80 throughout April-May fractal. Strong rejection on the #1,724.80 following Powell’s speech aftermath. The rejection has so far delivered a pullback on both Hourly 1 Support and Hourly 4 Lower Low extension again, zone that in my view plays the role of the Pivot within the Support and Resistance. DX is skyrocketing (# +0.35%), while U.S. Bond notes are on a mere (# +0.10%), indicating that Gold should continue the aggressive decline. I am expecting #1,670.80 within #2 sessions.
My position: I have closed my Selling order on #1,691.80 for security reasons and will engage again set of Selling orders when #1,688.80 break, calling for #1,670.80 extension.
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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.
