Gold switched from Bearish to Neutral on Short-term

Gold's general commentary: Recovery continuation on Gold during the most Volatile session of the Week, in situation (which should be Bearish for Gold) after yesterday's session E.U. opening, breaking all Resistances miraculously and again reversed since Bond notes reached the Top and are on a firm decline at the moment, which is adding Buying pressure on Gold. I will continue Buying as long as Bond notes are without a recovery. Fundamental events should appear as relief news and make DX break the Resistance and Gold to lose, but configuration went vice-versa, and not to calculate more, there is the rule which I mention constantly (what was the Support, becomes the Resistance and vice-versa), I am a bit surprised that Gold recovered this much and #1,722.80 former Support break (which was Trading as a Resistance) shifted Gold from Bearish to Neutral on Short-term. I will monitor the situation and will wait for confirmation of a breakout (either below the Hourly 4 Support or Daily chart Resistance), in order to have an clear direction. That is the plan and in my opinion it is the most viable to get the most of the current Price-action.


Technical analysis: Strong Bullish impulse on yesterday's U.S. session opening, as Gold engaged decent recovery and broken both Resistances in one hit (I cannot treat #1,730.80 as an breakout because of strong Volatility Gold is Trading under). This is a typical sign that the market should continue consolidating, waiting for a catalyst to reveal an direction. Since Gold is Buying every Bottom since March #7, fractal is repeated for #3 times, and using my experience of Gold Trading, every variance that Gold repeats #3 times or more, it becomes a cycle which every Trader should take into consideration. Gold Buys the dip (as is visible on my chart), continues the Buying sentiment, engages the consolidation Rectangle (lately #12 sessions of #15 point Trading), then engages the steeper fall. Regarding all mentioned above, I can expect #1,744.80 test where Gold can engage the consolidation Rectangle, and then again deliver Lower Low extension. Same with the Bond Yields (Intra-day), RSI is timed for a downtrend, as Bond Yields were Overbought for some time and could test the February Support, which can add huge Buying pressure on Gold and is perfectly correlated to Technical situation on Gold. Fundamentally, the risk-off sentiment that DX had these past few weeks should fade away after this result as Investors will remove capital from riskier assets such as DX and Bond Yields, and can go back to safe-haven metals such as Gold, with confidence. Meaning that if DX gains value, Bond Yields should benefit along with the Stock markets, which can engage the Selling sequence on Gold, and vice-versa, which is the case at the moment, on my configuration. However, pullback to the #1,722.80 and possible Price-action rejection is a Buy opportunity, below #1,722.80, I expect this week's late Sellers to yield and push the Price-action towards #1,700.80 again. It is highly important to note that Gold always repeats it’s cycles, as they are the key in being Profitable on Gold markets, along with the patience to remain on sidelines until Profitable pattern emerges.


My position: I was without a position throughout yesterday's session since Gold was already Overbought and on a decent Bullish number, and it was too dangerous to Buy at the Top. I will wait out Monday's session and either continue Buying if #1,744.80 Resistance break, or Sell on #1,722.80 Support break. Needless to mention, Gold can again engage the Rectangle consolidation and Trade without a move, similar to previous #2-Week fractal.