goldenBear88

Probable Buy opportunity

Long
OANDA:XAUUSD   Gold Spot / U.S. Dollar
The current strong decline on the #1,709.80 Higher Low came as no surprise as it is next to the Weekly market Bottom (February 20th) and #2018 High. If Gold closes today's Daily candle on #1,702.80 - #1,712.80 I will have a clear rejection with significant potential to retest the #1,736.80 Top. What is highly important to note is that I can spot Bullish candlestick patterns on Daily chart which can be indication for Bullish reversal - but also it is crucial to follow the Stock markets rule - with Stock markets on Weekly Channel Down - personally, I think that Bullish reversal has more chances to develop. For me it is more important that Stock Markets continue Trading on Channel Down and not meet the Daily Resistance which is holding since May #3. This should push Gold towards it's Daily High with significant Buying pressure. I was heavily on Sell side (since I am Medium/Long-term Trader and Gold was indeed Bearish on Medium-term), but for now, Medium-term trend is near completion. On May #18,, when Gold made the #1,764.80 Higher High, Stock markets made a Monthly Low, which confirms Gold’s strong correlation with Stock markets, meaning if there were no trade war tensions, it's current fair value would be near #1,680.80. The Stock markets are showing small recovering signs but I doubt that it will last. I will wait for today's market closing to draw a conclusion, since I don't want to jump on new position and endanger my Monthly Profit. Candle movements showing all signs that Gold should test Lower High and delivering the same kind of sentiment as last time what happened after this kind of report. I am personally waiting for another spike upwards. This is of course speculative on a largely Volatile past sessions and Price-action suggesting that every rise should be sold/vise versa. Daily chart demonstrates that this is a Profit taking favored zone since March #2014 as I Utilized this Bearish leg to it’s maximum. I can note with certainty that Medium-term Bearish trend is nearly over. Hourly 4 chart should turn into Ascending Channel and progressively test Higher levels, but for now I will remain on sidelines, booking extraordinary Profit.

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