goldenBear88

Keeping my set of Sells

Short
TVC:GOLD   CFDs on Gold (US$ / OZ)
Following yesterday’s spread divergence on Gold’s Spot-prices (Xau-Usd) and Gold Futures are attempting a balance and they are pretty close at the moment which indicates that Gold should be Trading according the Technical rules. My focus is on Spot-prices as always which were rising on the Asian session and printed Bullish Hourly 1 candle as E.U. session approached, but I doubt that it will last. Expect a high volatility today. It becomes obvious that Technically, mini Selling leg is ahead with the #1,680.80 Support as an obvious Target. It is my belief though that the extension can be as low as the #1,647.80 on Medium-term, if #1,680.80 Support is broken. The Daily chart remains Bearish but mixed and DX is not reacting as negatively as one would expect to the passing of the stimulus bill. However, Stock markets are pulling back also after hitting their April #20th Resistance, so in my opinion, I am expecting today’s Bearish sequence to continue and #14$ negative Gap fill towards my Target as U.S. session approaches. Usd-Jpy pair is on Yearly highs and confirming my Bearish outlook, which should add Bearish pressure on Gold. I am expecting Gold to re-test levels close to #1,680.80 within #2 sessions. Important to note is that RSI is on the same level as it was on the March Top and what followed it was an aggressive # -2.27% decline (#89% probability), so I expect the similar scenario within #2 sessions. Remember, Gold always repeats it’s cycles and respects the Medium-term underlying trend. However as long as Gold don't break #1,717.80, Bullish reversal is not sustainable. With high level of patience and skill of recognizing candlestick formations, I have greatly increased the odds in my favor. I had chance yesterday to close my set of Sells in Profits as Gold dipped #11$, but didn't took a chance since I spotted bigger margin Medium-term opportunity. Targets remained the same.

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