Buy order activated / Gold inside of Rising Wedge

Gold's general commentary: Gold continues to represent the product in High speculation mode and aswell side swings on DX aren’t going in favor to Gold Traders. It is also unknown whether a potential signing of the Tariff bill is already priced in or not, aswell with Biden’s intentions of #6 trillion spending agenda. Throughout Thursday’s session, I witnessed Gold on Buying sequence along with Bearish DX, (very fair diagonal correlation) however if you remember Wednesday’s session where Gold was preventing further downtrend with almost #18 point recovery from #1,831.80 (former) Support, on the same session DX was skyrocketing on one of the strongest Intra-day uptrends since #Q1, adding no expected Selling pressure on Gold. This shows how unpredictable and unstable Gold’s Intra-day has become. Gold so far isn't capitalizing on Friday’s session candlestick pattern on Daily chart as the mild decline on Bond Yields (# -0.49% notably) still keeping Gold ranged but with Bullish gradient on Hourly scale. Bond Yields are testing the #2-session Support zone again, able to form Double Bottom rejection as reddish candles are arriving (after such Fed commentary) which are more than less Bullish-wise for Gold hence Gold should benefit when Bond Yields are losing. DX is Trading near the Support zone and rebound there might reverse Gold’s correction attempts and such pace should practice Selling pressure on Gold (DX is #1st on importance list at the moment) where Weekly chart (#1W) points to a Cup and a Handle formation, however now everything points to a new Higher High's peak test.


Technical analysis: As discussed before, this is the Natural consolidation process after an Overbought run, limited to #1,882.80 - #1,884.80 configuration (strong Resistance zone). I doubt the further downswing since Selling on such Bullish bias is not advisable, especially with constant news regarding Inflation front which makes Investors to flee to safety and add enormous Buying pressure on Gold. It is important to note that the Price-action should continue Trading within Bollinger bands (should be added on every chart), while taking Monthly precise variable (August #7, #13, #26) Gold touched the bands line and always retraced, which gives credence to Traders which are using BB and personally as my estimations are showcasing that Price-action should continue Trading within Hourly 4 chart’s Bollinger Bands after #1,882.80 is touched and Fundamental dust settles. Also what is worth noting is that Hourly 1 chart could print the Double Bottom rejection which Technically is giving Low accuracy patterns which are not worth entering (unless one of the benchmarks break). It should be no surprise that Gold is Trading around its #1,852.80 first Support benchmark (with Bond Yields invalidating the downtrend) ahead of the upcoming week.


My position: After comfortably remaining on sidelines, Price-action delivered another Trading opportunity where I engaged my Buying order with #1,851.80 as my entry point. Since Gold is Trading inside of a Rising Wedge, I am expecting Higher High's peak test (my optimal Target is #1,882.80) if #1,870.80 - #1,875.80 does not contain the Bullish potential and stall the uptrend, and then I am expecting values even below #1,800.80 psychological barrier on the aftermath. Remember to implement strict Risk management if you decide to Trade this currently Highly Volatile market.