Buzzing bears in bullion market - Technicals & Trade Setup
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.
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.