Gold remains under pressure / #1,800.80 barrier possible
Gold's general commentary: Yesterday's E.U. session started in Neutral fashion as Gold was approaching the important threshold of the #1,838.80 - #1,840.80 Higher Low’s Upper zone on the Weekly chart regressional cycle. The Technical setting is now fully Bearish so this is an optimal Medium-term Selling opportunity on Gold for at least the January opening of #1,800.80 barrier, if not the #1,806.80 Weekly (#1W) Support zone. Scaling is part of Trading and when you have a projection of Medium-term trend where one should act accordingly. Gold always respects its Medium and Long-term cycles and for now Price-action is still within Neutral borders, right near the #1,840.80 retracement level since August's bottom. If the Lower High’s zone breaks however (#1,870.80, upper zone of Ascending Triangle), I will be looking at the very real possibility of a new #1,892.80 test (slim chances to develop).
Fundamental analysis: What is worth noting is that Gold (which is well known for it’s safe-haven role, currently in High demand) is generally doing well in pre-crisis or crisis times, and most likely Bullish pressure which was visible last couple of sessions are sign that Investors are using Gold once again as the security in tough times which yellow metal offers. Throughout the week, Price-action may not be heavily affected by the macro-economic release which occasionally arises Buyers on the aftermath, which may not add strong relevance. Personally, I expect rate to remain unchanged (and the Fundamental remarks on the DX), where Gold (fuelled by new hawkish stance) should Trade diagonally with DX, ignoring their Technical lateral correlation. Previous movements were performed due to the worldwide Bond market plunge and the escalation of the Trade tension. I assume no new orders unless Ascending Triangle breaks to the downside (#1,840.80 posing as an strong Support).
Technical analysis: As expected, Gold remains indecisive for the #14th consecutive session alongside DX on aggressive upswing (almost # +1.00%) which is having less or no impact on Gold. Current Inflation crisis will lead to a capital inflow to Gold (asset in High demand in such scenarios), working again as a Low risk asset for Investors who wish to see the later Trade implications from a safer place. I do not expect this phenomenon to last for long and Gold has to close the Gap with DX (remember a similar situation on the #1.326.80 and #1.327.80 Price-action), which broke the #95.00 barrier (November #11, #2017 fractal). All stated above is going in Gold’s Sellers favour, but lagging downside sequence is keeping the Bullish bias alive, where Sellers await Technical correction towards #1,800.80 barrier and it is the million Dollar question which side will prevail (I am heavily on Selling side). This is not fair Technical value / Price of Gold as I still aim for a Price-action near #1,800.80 pressure point. My estimations are pointing to #1,792.80, even #1,778.80.
My position: As I stated multiple times on my remarks, I will not engage unless #1,840.80 Support breaks which will trigger my pending Selling order towards #1,806.80 Selling extension. Market closing below #1,840.80 adds strong credence to Sellers.
Fundamental analysis: What is worth noting is that Gold (which is well known for it’s safe-haven role, currently in High demand) is generally doing well in pre-crisis or crisis times, and most likely Bullish pressure which was visible last couple of sessions are sign that Investors are using Gold once again as the security in tough times which yellow metal offers. Throughout the week, Price-action may not be heavily affected by the macro-economic release which occasionally arises Buyers on the aftermath, which may not add strong relevance. Personally, I expect rate to remain unchanged (and the Fundamental remarks on the DX), where Gold (fuelled by new hawkish stance) should Trade diagonally with DX, ignoring their Technical lateral correlation. Previous movements were performed due to the worldwide Bond market plunge and the escalation of the Trade tension. I assume no new orders unless Ascending Triangle breaks to the downside (#1,840.80 posing as an strong Support).
Technical analysis: As expected, Gold remains indecisive for the #14th consecutive session alongside DX on aggressive upswing (almost # +1.00%) which is having less or no impact on Gold. Current Inflation crisis will lead to a capital inflow to Gold (asset in High demand in such scenarios), working again as a Low risk asset for Investors who wish to see the later Trade implications from a safer place. I do not expect this phenomenon to last for long and Gold has to close the Gap with DX (remember a similar situation on the #1.326.80 and #1.327.80 Price-action), which broke the #95.00 barrier (November #11, #2017 fractal). All stated above is going in Gold’s Sellers favour, but lagging downside sequence is keeping the Bullish bias alive, where Sellers await Technical correction towards #1,800.80 barrier and it is the million Dollar question which side will prevail (I am heavily on Selling side). This is not fair Technical value / Price of Gold as I still aim for a Price-action near #1,800.80 pressure point. My estimations are pointing to #1,792.80, even #1,778.80.
My position: As I stated multiple times on my remarks, I will not engage unless #1,840.80 Support breaks which will trigger my pending Selling order towards #1,806.80 Selling extension. Market closing below #1,840.80 adds strong credence to Sellers.
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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.
