Buzzing bears in bullion market - Technicals & Trade Setup

FX:XAUUSD   Gold Spot / U.S. Dollar
Buzzing bears in bullion market shrug-off hammer on double top formation – Trade one-touch put as more dips on cards:

Despite an eventful summer and an almost 6% slide in gold price over the past three months, gold vols under-delivered across strikes and tenors. 

Technically, on daily plotting, Gold ( XAUUSD  price), has formed “dragonfly doji” at $1,173.92 levels. 

Consequently, bulls, have attempted to spike above DMAs ,on the contrary, shooting star and bearish engulfing patterns have popped-up at stiff resistance of at 1,211.98 levels (refer daily chart ).

Mild bull-swings, for this month, are not backed by both trend & momentum indicators (refer monthly chart).

Bears in the intermediate trend resume after failure swings at the stiff resistance & most likely to hit 20-month lows. Double top pattern has formed with top 1 at $1,375.04 and top 2 at $1,365.95 levels (refer monthly plotting). As a result, the current price on this timeframe, has slid below EMAs with bearish crossover. Amid this bearish journey, bears have shrugged-off the occurrence of hammer pattern.

After 3-years of consolidation phase, trend now seems exhausted again after back-to-back shooting star patterns at the stiff resistance levels, the major downtrend resumes upon bearish EMA & MACD crossovers (refer monthly chart). 

Hence, on trading grounds, one can buy 1m at the money -0.49 delta put options and on hedging grounds, we advocate squaring off any long positions, instead, initiate shorts in CME gold contracts for Dec’18 delivery at spot reference of $1,194/oz.

Currency Strength Index: FxWirePro's hourly USD spot index is inching towards 42 levels (which is bullish ), while articulating at 09:42 GMT .
Sir can you please tell in simple words that one must buy or sell at current level
FxWirePro AbhayAgrawal
@AbhayAgrawal, Well, buying put options would mean I'm bearish.
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