Gold Trading near crucial Resistance line

Gold's general commentary: Friday’s session Wall Street opening Bell had Bullish impact also on Bond Yields, hence Bearish for Gold. My Bullish bias is unchanged as Daily chart (main pointer regarding Medium-term) is on healthy Bullish Technicals as I will treat Bearish spikes as an oscillation from Overbought to Neutral (Williams%), which created new space for Bearish aggressive correction which you witnessed. Thursday’s U.S. session opening Bell delivered strong Selling impulse, however still the Bullish presence is straightforward and Seller’s intent was not strong enough since Hourly 4 chart’s Support zone is still not compromised, and break of could aswell deny emerging Death Cross on DX which is decent Bullish factor on Gold. Also on the other side, Gold failed to break above the Ultimate Top zone and was rejected (already being around # +0.42%). The upside extension remains #1,882.80, so if the Support breaks, Gold could slide downwards aggressively, if the case is opposite (#1,852.80 psychological benchmark re-test and break which occurred), #1,882.80 was Natural response and level to monitor.


Technical analysis: Gold aggressively gained value after the unexpectedly High NFP numbers against the theoretical correlation, which may indicate a strong Bullish shift on the underlying trend as my thesis is once again confirmed that #1,852.80 will be re-tested. As I explained on my remarks, this is primarily because Price-action reached an important threshold on Daily chart, the #1,827.80 Support zone as Gold started trending downwards within #2-consecutive sessions of Selling spree. It should be no surprise that the Weekly close was green (# +2.48% increase), far from almost first Bearish Weekly candle closing after #4 straight of Buying. Price-action is currently just below the Daily chart’s Resistance and market closing above opens a path towards #1,900.80 psychological benchmark. Keep in mind that #1,882.80 is a Higher High’s Upper zone on Daily chart so if Gold gets rejected on that Resistance, the Ascending Channel is still preserved and Price-action will remain isolated within, however there will appear many Short-term Selling opportunities (Intra-day). Personally, I prefer to see Resistance test-and-break to re-confirm the Bullish trend resumed towards #1,900.80 psychological benchmark. Bond Yields (# -8.27%) are on parabolic downtrend, suffering significant losses, however at the same time DX didn’t remain well Supported at #105.200, stopped beating Gold as a safe-haven asset in High demand. I can't speculate any more at the present moment as I need to monitor how the markets will digest current Price-action. I mentioned many times that as long as #1,827.80 Support is preserved, Buyers will re-appear on healthy Daily chart’s Technicals and push for Resistance test.


My position: Personally I have been awaiting values above #1,852.80 psychological mark and was ready to pursue the sequence with my Buying orders, however most of the gains were priced in throughout Asian session and now Price-action is close to an possible Top. Therefore, I have engaged my Selling order (#1,873.80 as an key entry point) as #1,882.80 seems to be strong Resistance threshold / my Target is #1,852.80 psychological benchmark. Keep in mind that as long as DX is Trading on such disappointing numbers, more serious correction on Gold will be far away. Implement strict Risk management if you decide to Trade this.