Gold Bullish on Short-term / Yields limiting the downtrend

Gold's general commentary: Despite the significant rise on DX (# +1.27%), Gold is looking rather Neutral within the inner layers of the Daily chart’s #1,860.80 - #1,870.80 Higher High’s extension, mainly because of the rising trend on Bond Yields (Weekly chart’s (#1W) Gap on Bond Yields, very strong impulse which added enormous Selling pressure on Gold, along with the DX rise following positive Retail Sales numbers). As the announcements debacle virtually out of the question (no significant market reaction), Buying pressure is not so strong and #1,850.80 psychological barrier should keep the Buying bias alive, as Gold is Trading within Bullish presence at the moment. Daily chart’s Support is intact as I don’t see a valid reason why Gold gradually won’t rise back towards #1,875.80 Resistance as today’s U.S. session approaches, which may cause even stronger uptrend on DX. With Weekly chart still on a Long-term downtrend, there are no arguments to Support the uptrend (regarding Medium-term). Correlating assets are still strong and should prevent the further uptrend, but as always, these are Fundamentally driven sessions, where no Technical rules apply. #1,895.80 - #1,900.80 is the maximum out of current Bullish potential, where I am expecting #1,800.80 next and #1,750.80 benchmark in extension.


Technical analysis: Even though the Price-action broke the Higher High’s trendline, it failed to test the #1,870.80 - #1,875.80 first Resistance zone (former Resistance), so Technically, Gold is is still near Higher High’s extension, and if Resistance zone breaks, Gold will be Targeting #1,900.80 fractal on yet another Buying sequence. If however #1,850.80 breaks again, then the Hourly 1 chart’s variance of #1,832.80 should be tested, in case of Bearish sequence below, Price-action will be calling for #1,822.80 final line of the downtrend and as discussed, possible stabilization zone ahead of #1,800.80 benchmark (less likely since Inflation is growing more and more on Daily basis, which may limit potential takedowns on Gold). Subsequently, previous Hourly 4 chart’s Resistance of #1,862.80 was firmly broken and current configuration points out to a new bigger proportion uptrend. Gold remains relatively Low under the circumstances and best thing to do at the moment is Trade within the Hourly 4 chart’s Bollinger Bands. Anything outside this range is led by macro-economic forces that are difficult to handle with such uncertainty. Since Fundamentals proven being stronger Trend-changer and distorted Technical Trends strongly many times before, I will wait for #1,870.80 break to engage my Buying orders.


My position: As I was on sidelines for a while lately (more than #10 sessions) waiting for market to return to Normal conditions, the decision was proven to be excellent as I preserved my capital. After riding the Bullish wave throughout yesterday's session, I am ready to continue Buying if #1,870.80 Resistance breaks, moving Stop-loss in Profit every #6 points (strict Risk management). I will consider #1,870.80 broken, if Price-action prints #3 points on top of it. I will be ready to pursue #1,895.80 in extension. Correction is possible, but will not be so strong due to Bond Yields Trading near the Support zone.