BlueHatInvestor

Gold/XAUUSD ~ Blow-off Top Keeps On...Blowing? (2H)

Short
BlueHatInvestor Updated   
TVC:GOLD   CFDs on Gold (US$ / OZ)
GOLD chart mapping/analysis.

Gold's massive (algo-triggered) blow-off top killed the bullish momentum - pending further selling pressure if DXY/bond yields decide to rally into end of the year..

Trading scenarios into EOY:
  • Selling pressure towards 50% Fib initial support zone.
  • Bearish EOY capitulation target = Golden Pocket support zone.
  • Expect any bullish reversal to be met with sellers, pending underlying relative strength in DXY/bond yields.
  • 38.2% Fib / 200SMA confluence zone as potential target for short positioning, TBC.
Comment:
Gold chart update (Thurs 14/12):
  • Price action held 50% Fib - ripper bounce post-FOMC to re-test ascending trend-line (green dashed).
  • Initial consolidation range = ~2040 psych &/or upper range of parallel channel (light blue) / 38.2% Fib.
  • Expect further strength in precious metals if US bond yields &/or DXY extend weakness into EOY.