Gold inside the Neutral Rectangle since December #3

Gold's general commentary: Gold is close to a critical point on the Hourly 4 chart. Buying every Low for the #4th consecutive time, candle sequence that was last seen on December #2013 that led to a new Yearly Top. Mentioned fractal: December's #1,230.30 bottom was crossed, Gold extended the decline by shorting the #1,365.30 High. I expect the same at the moment - small pullback and #1,792.80 - #1,795.80 test, then final push towards #1,759.80 and #1,727.80 extension. Usually, based on personal experience, Gold always repeats it’s own trends / cycles. Similar scenario is happening currently: Fundamental side is giving me mixed signals and no patterns with High reliability. Also, Technical side should switch to Bearish regarding Short-term as I will approach with extreme caution. Resemblance from #2017 Year: Support sequence was the March #2017’s #1,472.80 test, which if was broken would lead to the December #1,458.80 Low, where Price-action was expected strong rebound towards #1,500.80 by mid-January the. The Monthly candle is already at (# -1.00%) and decreasing and for the first time in years on RSI # 54.88, indicating that Gold is Trading within Long-term Descending Channel. Today’s sideways performance is due to the Oversold Hourly 4 chart. Pullbacks on this uptrend will be surely offered and Selling entries can be calculated based on how Bond Yields will be Trading in the coming sessions. From now on, the correlation of Gold with DX may be weaker, as December and January (early #Q1) are Gold - Bond Yields correlation Months. If Gold breaks Resistance cluster and closes the session above it, Bearish bias is invalidated as I will Buy Gold towards #1,812.80 extension. I expect less or no Selling pressure throughout today’s session.


Technical analysis: As Bond Yields are Trading on losses for #2 consecutive sessions, it is natural to expect Buying pressure visible on Gold. Current configuration should last at least as High as #1,792.80 - #1,795.80 (my personal maximum). If #1,795.80 breaks, I may Buy Gold (if market closes above #1,795.80 and of course if variance allows) aiming at #1,812.80 (above #1,800.80 psychological barrier). As expected, Buying accumulation I discussed throughout yesterday's session started and the Technical reason behind it was the Ascending Triangle configuration which is adding confidence to Buyers, and attracted Short-term Investors, triggering their Buying orders. Hourly 1 chart remains an Ascending Channel (ready to break above the Ascending Triangle), so I will be keeping an eye on the Daily chart’s #1,812.80 for Medium-term Resistance attempts and the Hourly 4 chart’s #1,795.80 for Short-term Resistance. Technically the Hourly 4 chart’s Resistance has been unbroken for a while now and rejected the Price-action on multiple occasions, so you realize the significance of this level. I doubt that nearby Resistance cluster will break without strong catalyst.


Conclusion: Bottom line, I will Buy Gold if #1,795.80 breaks (and Gold closes the session above it) and will Sell on spot if #1,778.80 breaks (Targeting #1,766.80 firstly, then #1,759.80 in extension), accompanied of course with Bond Yields above the Resistance. Don't be surprised if you see thin Volume throughout today's session. I well preserved my capital as I will be ready to Trade the breakout.