Gold's general commentary: Gold had decent upswing throughout last week (due DX decline) and Naturally the market reacted with a rejection on early E.U. opening throughout today's session. The pullback can extend as Low as the Support on Daily chart which is currently Trading at #1,800.80 and if broken, #1,797.80 in extension before new Short-term Buyers appear. The real market news are already digested by market and due holiday’s, #1 - #2 sessions horizon won’t reveal any clues since rarely post-holiday days rarely offer any Short-term conclusions. If #1,815.80 fails to hold, #1,832.80 is the next Resistance and expect a Higher High’s Upper zone to be met there, re-Sell zone if #1,832.80 Quadruple Top holds. I am heavily on Selling side.
Technical analysis: Another strong Bearish Daily chart candle (# -0.27% so far) with the uptrend on Hourly 4 chart's Ascending Chanel testing the #1,815.80 Bullish extension of Lower High's. Besides Technical correlations, important Fundamental/Bullish factor at the moment is still without relief on global geopolitics (Trade war developments, increased number of virus infection) which may cause risky assets to lose and Gold to gain. This shows how deflated Gold was due to these tensions during this most recent Bearish leg. Gold is being kept on High levels despite DX’s decline mainly due to the strong Fundamental Buying pressure, and even though Bond Yields (main correlation) are comfortably Trading on recent High's, Gold is showing High durability. The slightest pullback on Bond Yields should push Gold inside the ideal Sell Zone (strongly rejecting any upside move on the Weekly chart) where I will be waiting to Sell the market on a Long-term basis. Keep in mind that only a break above #1,815.80 constitutes a Bullish continuation sign for the Short-term. In order to harmonize Neutral values on Gold, #2 - #4 sessions may be required based on the previous two Higher Low pull backs of a # -1.70% magnitude (similar sequence occurred on January #24 and February #14 ). Notice how the pre-Fundamental speculation since the start of the week has been pricing the unfavorable repo's by Fed prospect with constant Low's on DX, which is still in crisis after the very encouraging numbers last week. Typical institutional Trading approach ahead of big economic events.
My position: Gold is now ranging as the signs of exhaustion from both the Wall Street repo agreements news rally and DX’s correction are showing up. Technically the Price-action is Neutral on Hourly 1 chart within #1,800’s belt. However, Price-action got rejected on #1,815.80 Resistance zone and is now Trading within Neutral Rectangle, as Gold remains relatively High under the circumstances. Under this Volatility best to do is wait for a breakout. Anything outside Daily Rectangle is led by macro-conomic forces that are difficult to handle with such uncertainty. If Gold breaks and closes above #1,815.80, Buyers may Target the #1,832.80 Higher High's extension. However, if #1,800.80 barrier breaks and Gold breaks #1,797.80 with force, I will activate my Selling order towards #1,778.80 Support zone. Remember, as long as Bond Yields are Trading near the Resistance, recovery on Gold will be limited.
Technical analysis: Another strong Bearish Daily chart candle (# -0.27% so far) with the uptrend on Hourly 4 chart's Ascending Chanel testing the #1,815.80 Bullish extension of Lower High's. Besides Technical correlations, important Fundamental/Bullish factor at the moment is still without relief on global geopolitics (Trade war developments, increased number of virus infection) which may cause risky assets to lose and Gold to gain. This shows how deflated Gold was due to these tensions during this most recent Bearish leg. Gold is being kept on High levels despite DX’s decline mainly due to the strong Fundamental Buying pressure, and even though Bond Yields (main correlation) are comfortably Trading on recent High's, Gold is showing High durability. The slightest pullback on Bond Yields should push Gold inside the ideal Sell Zone (strongly rejecting any upside move on the Weekly chart) where I will be waiting to Sell the market on a Long-term basis. Keep in mind that only a break above #1,815.80 constitutes a Bullish continuation sign for the Short-term. In order to harmonize Neutral values on Gold, #2 - #4 sessions may be required based on the previous two Higher Low pull backs of a # -1.70% magnitude (similar sequence occurred on January #24 and February #14 ). Notice how the pre-Fundamental speculation since the start of the week has been pricing the unfavorable repo's by Fed prospect with constant Low's on DX, which is still in crisis after the very encouraging numbers last week. Typical institutional Trading approach ahead of big economic events.
My position: Gold is now ranging as the signs of exhaustion from both the Wall Street repo agreements news rally and DX’s correction are showing up. Technically the Price-action is Neutral on Hourly 1 chart within #1,800’s belt. However, Price-action got rejected on #1,815.80 Resistance zone and is now Trading within Neutral Rectangle, as Gold remains relatively High under the circumstances. Under this Volatility best to do is wait for a breakout. Anything outside Daily Rectangle is led by macro-conomic forces that are difficult to handle with such uncertainty. If Gold breaks and closes above #1,815.80, Buyers may Target the #1,832.80 Higher High's extension. However, if #1,800.80 barrier breaks and Gold breaks #1,797.80 with force, I will activate my Selling order towards #1,778.80 Support zone. Remember, as long as Bond Yields are Trading near the Resistance, recovery on Gold will be limited.
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- Few other un-official channels are not mine, they are copies using my real information (impersonating me and my work / identity) so keep that in mind and beware of those.
