Gold extended the recovery and postponed the final decline
Gold's general commentary: Despite Price-action Trading within an Daily hart’s firm Channel Down, Gold is purely responding to the Fundamentals of the DX that is on High speculation mode ahead of the Q2 GDP report (and U.S. debt skyrocketing) and new (Chinese property giant) Evergrande (Gold's Buyers only hope). Fundamentally, if there are no surprises, Investors should seek to offload the Buying orders near the #1,678.80 bottom. This also conforms to the Medium and Long-term Bearish cycle of Gold, the bottom of which I don't believe that Traders have seen recently (#1,455.80), and the Bullish projection of the DX (every pre-post crisis, DX engages Bullish rally). I expect Selling accumulation until the late hours of the U.S. session (probably around #1,750's followed by a sharp Bearish turn towards #1,727.80 Support zone, early next week). DX is pulling back and Bond Yields were rejected near #3-Week Top’s. Current configurations offers me no Intra-day signals, and as I am not interesting in Buying (to a very huge extent), I will wait for #1,747.80 structure to break and pursue #1,727.80 with my Selling order.
Technical analysis: Despite the Fundamental reports missing their estimates and High’s on both DX and Yields, Gold is kept Supported above #1,722.80 and currently on miraculous over-extended recovery, but yet, #30 point recovery was too much to add to the Oversold levels and such Selling bias. However I don't expect those to play that big of a role in the coming days. At the moment Gold Technically should be below the Support and if DX extend the uptrend and Bond Yields to engage the recovery / Gold will be considerably Lower. It is important to note that Gold is showcasing Bearish values since Channel Up on Hourly 1 chart is counterbalanced by Daily chart’s Channel Down adding constant Selling pressure on Gold and the result is this Price-action fluctuation without a major move on a horizon (classic consolidation). If Support (#1,747.80) gets broken below on minimum #3 points expect #1,727.80 within #2 sessions, which can prepare the terrain for additional losses early next week, which will reach again the Lower Low trendline of the Hourly 4 chart’s Channel. If rejected near the Support, expect another dull session on Gold with not much Price-action throughout today's session. As long as Daily chart is Bearish, both scenarios are not equally probable on the Short-term, since Gold should give another Lower Low, as cycle is repeated. On the Medium-term though, as long as Gold Trades below #1,778.80 fractal, it has more probabilities to make a Lower Low than a Lower High. Needless to say, Gold can also pierce the Resistance and switch from Bearish to Bullish on Short-term, but that pattern is less likely to arise. Historically, Gold always delivers #3 Lower Low extension before major reversal, and #2 are already delivered. I am expecting #1,700.80 test within #5 sessions.
My position: Since my Support of #1,722.80 was preserved throughout yesterday's session (firm rejection above), I will continue patiently waiting for Selling opportunity where I will Sell on spot if such pattern appears. Until then, I will comfortably remain on sidelines, as I am more than satisfied with my Monthly Profits. Don't be surprised if you see thin Volume throughout today's session, as current consolidation offers no firm moves. It is best to take an early weekend brake and call it for the session.
Technical analysis: Despite the Fundamental reports missing their estimates and High’s on both DX and Yields, Gold is kept Supported above #1,722.80 and currently on miraculous over-extended recovery, but yet, #30 point recovery was too much to add to the Oversold levels and such Selling bias. However I don't expect those to play that big of a role in the coming days. At the moment Gold Technically should be below the Support and if DX extend the uptrend and Bond Yields to engage the recovery / Gold will be considerably Lower. It is important to note that Gold is showcasing Bearish values since Channel Up on Hourly 1 chart is counterbalanced by Daily chart’s Channel Down adding constant Selling pressure on Gold and the result is this Price-action fluctuation without a major move on a horizon (classic consolidation). If Support (#1,747.80) gets broken below on minimum #3 points expect #1,727.80 within #2 sessions, which can prepare the terrain for additional losses early next week, which will reach again the Lower Low trendline of the Hourly 4 chart’s Channel. If rejected near the Support, expect another dull session on Gold with not much Price-action throughout today's session. As long as Daily chart is Bearish, both scenarios are not equally probable on the Short-term, since Gold should give another Lower Low, as cycle is repeated. On the Medium-term though, as long as Gold Trades below #1,778.80 fractal, it has more probabilities to make a Lower Low than a Lower High. Needless to say, Gold can also pierce the Resistance and switch from Bearish to Bullish on Short-term, but that pattern is less likely to arise. Historically, Gold always delivers #3 Lower Low extension before major reversal, and #2 are already delivered. I am expecting #1,700.80 test within #5 sessions.
My position: Since my Support of #1,722.80 was preserved throughout yesterday's session (firm rejection above), I will continue patiently waiting for Selling opportunity where I will Sell on spot if such pattern appears. Until then, I will comfortably remain on sidelines, as I am more than satisfied with my Monthly Profits. Don't be surprised if you see thin Volume throughout today's session, as current consolidation offers no firm moves. It is best to take an early weekend brake and call it for the session.
- My official and only Telegram Channel: t.me/goldenBear88
- 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.
- 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.
