goldenBear88

Configuration can go both ways / will Trade the breakout

Long
TVC:GOLD   CFDs on Gold (US$ / OZ)
The Daily chart Support (Price-action is way below the #MA50) broke again on yesterday’s session as Price-action is on a critical crossroads regarding Gold . If the current Daily chart candle closes below the #1,830.80, it would be the first time to do so since July #21. That would most likely signal the start of a new Bullish phase (Medium-term). Another indicator is the Hourly 4 chart RSI configuration, which is offering decent Support since October #28 (every RSI rejection from October #28 resulted as an aggressive Bullish spike) which will provide me a decent Buy entry. If the RSI breaks below, it would be the first time since August #31, an clear sign of Bearish strength for the Medium-term where I will contemplate Selling the market towards #1,750.80. DX was taking strong hits on yesterday's early E.U. opening, but as U.S. session approached, vaccine relief appeared on the market and DX Bought back the early dip with massive Bullish Gap fill, and as an result was current decline visible on Gold charts. Movement is still within my models and current configuration can offer me optimal Buy opportunity towards #1,882.80. However, if #1,821.80 breaks, it will activate my Sell order and I will pursue lower Targets such as #1,800.80 and #1,780.80 in extension. Gold is on an interesting Technical fractal on the Hourly 4 chart. The dominant pattern is a clear Channel Down since November #17 High. However since November #11, the Hourly 4 RSI is descending, being on Higher Highs, which is on a Bearish divergence with the actual Spot Price-action which is on Lower High's and Lower Low's. I have seen the exact same sequence on July #8 - #16 fractal , where Gold was within Rectangle , engaged the aggressive decline, then started the recovery with more than #200 points. The RSI was then descending aswell, while the Price-action made three Lower Lows on the bottom trend-line of the Channel Down, which Technically (if Gold repeat it’s cycle) could engage the recovery and hit #1,900.80 psychological barrier. That suggests that Gold may be pricing a bottom here (temporary or not). DX is pulling back while equities are rising, so I believe that soon Gold will make a Lower High run towards the Hourly 4 #MA50, unless #1,821.80 breaks first, in which case the downside potential is #1,790.80 - #1,778.80 and invalidate my pattern. If U.S. session opening don’t disappoint, I will engage my set of Buy orders, however if Support is compromised, I won't hesitate to engage my set of Sell orders. My suggestion will be to Trade the breakout and for Short-term Traders (with smaller margin) is to remain on sidelines/without a position.
My Telegram channel: https://t.me/goldenBear88

Professional market analyst and Financial consultant with over #8 Years experience. I specialize Gold market using specific proven mathematical models. I provide market insights and Professional guidance.

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