Buying strongly limited / #1,748.80 expected in addition

Gold's general commentary: Gold is being kept below the Hourly 4 chart’s Resistance zone of #1,805.80 - #1,810.80 despite the rejection on DX and continuous rise on equities, Gold managed to prepare the terrain for aggressive takedown, according to my estimations. Besides the strong Volume and evident Selling pressure, is is strongly possible that the DX (# -0.17%) is what's keeping Gold High, relative to circumstances. Regardless of that, the Daily chart’s Support (Medium-term) is Trading just few points below, at #1,792.80, if broken it can open doors for #1,752.80 test and is alone a positive development for Sellers ahead of the end of the Trading week. Hourly 4 chart remains an solid Channel Down and being Bearish indicates a Short-term Selling opportunity towards #1,750.80 psychological barrier. Keep an eye on the Bond Yields when the U.S. session opens (Bullish Gap fill), in order to get more information of the Intra-day direction. Gold got rejected at #1,800.80 and since the pullback wasn’t Bought back above the Hourly 1 chart’s Buying accumulation zone, current Price-action points that the Selling sentiment remains unchanged as this is just one of the first Trading week’s of the Month. That keeps the Hourly 4 chart’s Channel Down valid (already converted to a Bearish Flag / messenger of Selling continuation ahead), with #1.752.80 configuration currently representing it’s Lower Low extension. Technically, if the #1,810.80 Resistance breaks, only then Channel Down breaks and should Price a Lower High (very slim chances). There are no High impact macroeconomic reports throughout today’s session, the combination of falling DX (now merely Buying back the dip) and decent uptrend on U.S. Bond Yields should deflate Gold even more before Weekend break, and another configuration / which can benefit me is that DX is becoming my strongest correlation at the moment regarding Gold market.


Technical analysis: Despite the strong Bearish candle sequence on DX, Gold remains on gains and above my Support for the session as the U.S. session approaches and Political tensions resurface. However, #1,808.80 is new Resistance zone made by the Hourly 4 candlestick configuration, along with #1,810.80 which is only #2 points away. Gold should be pulling back again after it failed to break above it’s Resistance variance (#1,805.80 - #1,810.80) on the Hourly 4 chart, while #1,778.80 configuration is protecting the eminent downtrend. This sequence is similar to the September #24 - #28 pattern when a Double Bottom was made before the strong rebound. Also current Gold's impulse and rejection was Highly correlated with the side Swings on the Bond Yields market, Swings on Hourly basis. As discussed, Gold is Trading within Channel Down and that fractal is Buying back every dip and postponing the downtrend and pointing me that Gold should be timed for consolidation session (regarding Short-term). I am looking to complete a full oscillation towards #1,748.80, in the same time my main point of interests. I am expecting #1,748.80 within #5 sessions if Bond Yields remain without a Daily chart proportions decline and DX on a mere rebound. My practical suggestion would be to wait for a breakout and then make a move, since at the moment - there is a clash between Technical Bearish Flag and Fundamental uncertainty which could make Investors park their capital from riskier assets into traditional safe-haven assets such as Gold. Consequently the current consolidation and another Bearish wave should come as no Technical surprise, only if my #1,792.80 Support is invalidated.


My position: I have closed my Selling order almost near the breakeven (in some cases, moving Stop-loss every #3 points in Profits to prevent unexpected scenarios), as yesterday's decline was rejected near the #1,785.80 point, due to strong takedown on DX which added Buying pressure on Gold. As I don't expect much from today's session, I will call it for today and comfortably head on weekend break, more than satisfied with my Monthly Profits.