Buying strongly limited / Intra-day Volatility on DX

TVC:GOLD   CFDs on Gold (US$ / OZ)
Gold's general commentary: Personally - it should be a huge surprise that Gold is not under strong Selling pressure already (Selling swing on every local High) as DX is extending the Short-term decline, Bond Yields (less important) were near the Resistance (which should be Bearish for Gold - adding Selling pressure), while Usd-Jpy is on a Bearish gradient below the Neutral Rectangle . Regarding Technical developments - I see no space for further Buying and can’t speculate until when these side Swings will last - but Gold will, as always follow the cycle and main pointer of a possible Bearish leg is Gold which once again should be rejected near Resistance cluster and much needed Daily chart’s #1,750.80 test. It is not wise move to engage a position before the firm rejection confirmation, as my analysis always filters such events and whatever the outcome is, I will place myself on Medium-term calling for #1,722.80 and #1,700.80 psychological barrier in extension. Statistically, from March #27, when Gold tests the Resistance #3 or more times and get’s rejected - #4th rejection results as an aggressive decline on the aftermath. If #1,750.80 and #1,722.80 get invalidated, #1,678.80 is point to monitor. It is important that #1,800.80 benchmark rejected the Price-action lately, which rose Buyer's hopes and keeping Gold within Neutral Rectangle (regarding Medium-term), as I don't think that #1,800.80 barrier will be broken aswell on current recovery attempt on Gold .

Technical analysis: First Short-term extension, currently Trading at #1,761.80 has rejected the Price-action (Spot prices) as the diverging Ascending Channel on Hourly 4 chart is extending the recovery towards #1,792.80 Resistance cluster again and already mentioned Higher High Lower zone. Last #3 out of #3 more serious declines on DX instantly affected Gold with enormous Buying pressure (#100% times sharply), while #5 out of #5 more serious uptrends on DX (including #52-Week High attempt lately) were strongly ignored by main correlation I have at the moment ( DX - Gold ), which indicates how manually Short-term fair Technical trend is affected by market speculators on Intra-day basis. My only explanation for unprecedented Volatility is that the speculators are postponing (but not altering) the (#1W) downtrend / meltdown, keeping Support zones intact for more than #15 sessions now. Gold is already near strong Overbought waters on Hourly 4 chart, while Daily chart timeframe already showing Selling signals. What is driving the Gold market though (besides the DX ) is Usd-Jpy pair (Bond Yields are not important at the moment) as discussed numerous times, that has seen Trading within Neutral Rectangle since October #5 and Price-action currently testing #1-Month Support. The emerging Weekly chart’s Descending Channel will always pressure for an Selling sequence (inflated prices of Gold will be wiped out with more than #100 points within #1 Trading week shortly) could issue a serious pullback, so since I missed this Bullish “unfair” rally, I will gain more on expected Selling sequence with #1,588.80 as an final extension before Stabilization zone. It would be best to wait for contact once again with the #1,761.80 Support zone and stabilization on DX , to make move on Gold . Aswell, it is strange that DX breaks Daily chart’s Support without a valid reason, since current Trading week haven’t got any High impact Macro-economic announcements which can engage such moves (only Building Permits and Existing Home Sales). i will continue closing Intra-day orders which does not deliver results, implementing #4 - #6 Risk management (tight Stop-losses) until current Volatility is present. I will remain on sidelines for current session, as I am not interested in Buying Gold . I will Sell Gold on spot once recovery is altered (with pin-bar candlestick confirmation).

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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.