goldenBear88

Excellent Selling opportunity next Week

Short
TVC:GOLD   CFDs on Gold (US$ / OZ)
The Hourly 4 chart RSI sequence is identical to the February #24 - #27 #2017, which after it hit the #MA50, resulted into the sharp decline to #1,566.80 (was #MA200 then), as I don’t doubt that this will be the case next week as Gold historically repeats it’s Cycles as I expect steeper fall from this point. At the same time Stock markets were recovering the losses (# -0.16% up from Friday’s Higher Low) and DX was on a semi-correction. This should pile on the Selling pressure on Gold but (can be retroactively) without any major Macro reports on E.U opening (Monday), I may have to wait until Thursday for more significant fall. Gold got the necessary Technical correction (September #27 Support was broken) and I should be seeing a continuation of the downtrend. October fractal should be fully Bearish (for Gold), also what is worth noting is that next week is filled with Bullish Fundamental reports - but my analysis always is based on Medium-term and takes in consideration such events, one way or another Gold should engage the decline. Bond markets are on a spiral downtrend which also adds more Selling pressure on Gold. In my opinion Stock markets are they key (essential), if they extend their recovery (and DX makes its first Bullish Hourly 1 chart candle) Gold will follow it’s Technical Bearish course. So far Gold has failed at attempt to break the #1,907.80 Support zone on Hourly 4 chart despite Friday's # -0.27% decline on DX Intra-day. Keep in mind that #MA200 is near and could be broken/invalidated, postponing devaluation on Gold. That very same development on any other occasion would be considered as an Bull breakout, but I had Retail Sales on yesterday's session, (usually Gold has Bullish sentiment on the aftermath), also which could be positive for DX on smaller timeframe / but it is no reason for an alarm not to change my outlook. Gold currently is still not on strongest Daily candle since October #2 and seems like #1,909.80 formed new Weekly Top. This means that Gold is already in strong Overbought waters (since September #27) and based on my estimations, I see no space for further Buying. All I can spot is new decline as an answer on this aggressive Bullish spike. Despite Thursday’s strong response to #1,917.80, Gold failed to maintain those high levels and was rejected on one of the Hourly 4 chart MA’s. Yet, it still found Support on the Daily Higher Low, which remains Neutral and had high potential to contain this Bullish pullback. Factors that may break the Support: 1) DX is on Bullish trend 2) Bond Market is still on Lower levels. Also the Weekly chart has been Overbought for some time 3) Stock markets are most important asset to monitor since it dictates price or Gold (and they are Trading near Resistance). Unless Gold Trades sideways at least for #5-10 sessions, Hourly 4 chart will always pressure for a lower Targets test with the #1,860.80 as a final destination. Personally, as long as #1,919.80 Resistance holds, I maintain my Target and preserving my Bearish outlook on Gold.

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