AS we seen gold is bullish throught since last three weeks and this fourth week its very critical point and is the strong resistance and today after gold went consolidation area.
The ability to get above the Lower High extension on the Daily chart along with the sharp fall on equities, are putting Gold under Buying pressure again. At the same time DX has made a new Bottom below the #2 Week Low. Gold is on an interesting Technical fractal on the Hourly D1 chart. The dominant pattern is a healthy Channel Up since March #30 Bottom. However, interesting variance on December 28, the Hourly 4 RSI was ascending, being on Higher High’s, which was near pricing the Bearish divergence with the actual Spot Price-action which is on Lower High’s and Higher High’s. I have spotted the exact same sequence on July 8 - 16 fractal , where Gold was within Rectangle , engaged the aggressive decline, then started the recovery with more than 100 points. The RSI was then descending, while the Price-action made three Lower Low’s on the bottom trendline of the Channel Down, which Technically (if Gold repeat it’s cycle) could engage the decline and hit 1800 configuration, then 100 points aggressive decline towards 1700 psychological barrier. That suggests that Gold may be pricing a Top soon (temporary or not) and using as an rejection point.
The ability to get above the Lower High extension on the Daily chart along with the sharp fall on equities, are putting Gold under Buying pressure again. At the same time DX has made a new Bottom below the #2 Week Low. Gold is on an interesting Technical fractal on the Hourly D1 chart. The dominant pattern is a healthy Channel Up since March #30 Bottom. However, interesting variance on December 28, the Hourly 4 RSI was ascending, being on Higher High’s, which was near pricing the Bearish divergence with the actual Spot Price-action which is on Lower High’s and Higher High’s. I have spotted the exact same sequence on July 8 - 16 fractal , where Gold was within Rectangle , engaged the aggressive decline, then started the recovery with more than 100 points. The RSI was then descending, while the Price-action made three Lower Low’s on the bottom trendline of the Channel Down, which Technically (if Gold repeat it’s cycle) could engage the decline and hit 1800 configuration, then 100 points aggressive decline towards 1700 psychological barrier. That suggests that Gold may be pricing a Top soon (temporary or not) and using as an rejection point.