Gold dangerously approaching Support levels as expected
Gold's general commentary: As expected, Gold found Support again on the Hourly 4 chart’s #1,827.80 - #1,832.80 zone and rebounded back near the #1,852.80 benchmark, in the same manner representing final Resistance ahead of #1,868.80. This was the #5th test of #1,832.80 pressure point since July #15 and it is no surprise that mentioned level is of utmost importance. Even though Bond Yields historically were one of the most important readings / correlations (having direct impact on Gold), I may see movement below #1,832.80 Support after today’s U.S. session as the Daily chart’s RSI is relatively idle.
Technical analysis: The consolidation within roughly the #1,800.80 - #1,821.80 zone is one of the tightest and strongest in recent Month’s (Daily chart’s Volatility is very High fuelled by a Buying pressure (Gold as a safe-haven due Inflation on ATH’s) and Selling pressure equally (Technically Gold is strongly Overbought and Trading on Inflated Price-action which may be corrected in one hit / candle such as current one)). Important test of the Hourly 4 chart’s #1,852.80 level which was broken to the upside on November #11 and broken to the downside within few sessions (November #19) seems to be postponed. Even though the Volatility on Fundamental side ahead of final session of week, Gold is approaching my Selling entry levels. Following the Fed's intention to battle Inflation with #2 rate hikes by the end of #2022, Gold should Naturally collapse as the the soaring for the past #2 Months was based on its attribute as a counter-Inflation asset. The Lower the Inflation, the less attractive Gold will be to Investors. I am expecting break of the Support zone and Price-action reuniting with Volatility belt. That is roughly within #1,811.80 - #1,783.80 and as discussed, represents the High Volatility Zone where Gold consolidated from December #29 to January #11. Unless of course the DX and Bond Yields invalidate heir respective Support zone which they are currently well preserving. Gold largely remains within the range of the Daily chart’s Bollinger Bands, however on Bullish gradient that started on January #7. It is important to note that Gold tends to Trade within Daily chart's Bollinger Bands and only visible variable for determination of the rule was November #10 peak which was instantly Sold and Price-action continued to Trade within Bands. Regarding current Price-action, I am not Trading this until #1,832.80 breaks firmly. However, Higher Inflation reading should be negative for the DX and positive for Gold and vice-versa. That is on the Short-term. On the Medium-term though, as long as the Bond Yields are Bullish Trading above its Daily chart’s #MA50, Gold's sentiment will be Sell on every major peak rejection for an end of Year Target of #1,588.80 or below.
My position: Gold is dangerously approaching the Support levels which I have been mentioning, and yet again Fundamentally driven rise is altered by a strong Hourly 4 engulfing candle (remember, Inflated aggressive rise will be equally strong when Selling sentiment appears, where Price-action will print equally aggressive decline prior to such rise). However, every #1,830.80 - #1,832.80 rejection can be treated as an Buying opportunity (towards #1,842.80 strong Resistance cluster) so Sellers should be careful with their entry point. I will engage only if #1,830.80 breaks, Targeting #1,811.80 Selling extension, exceeding my Profits run to #11 in a row.
Technical analysis: The consolidation within roughly the #1,800.80 - #1,821.80 zone is one of the tightest and strongest in recent Month’s (Daily chart’s Volatility is very High fuelled by a Buying pressure (Gold as a safe-haven due Inflation on ATH’s) and Selling pressure equally (Technically Gold is strongly Overbought and Trading on Inflated Price-action which may be corrected in one hit / candle such as current one)). Important test of the Hourly 4 chart’s #1,852.80 level which was broken to the upside on November #11 and broken to the downside within few sessions (November #19) seems to be postponed. Even though the Volatility on Fundamental side ahead of final session of week, Gold is approaching my Selling entry levels. Following the Fed's intention to battle Inflation with #2 rate hikes by the end of #2022, Gold should Naturally collapse as the the soaring for the past #2 Months was based on its attribute as a counter-Inflation asset. The Lower the Inflation, the less attractive Gold will be to Investors. I am expecting break of the Support zone and Price-action reuniting with Volatility belt. That is roughly within #1,811.80 - #1,783.80 and as discussed, represents the High Volatility Zone where Gold consolidated from December #29 to January #11. Unless of course the DX and Bond Yields invalidate heir respective Support zone which they are currently well preserving. Gold largely remains within the range of the Daily chart’s Bollinger Bands, however on Bullish gradient that started on January #7. It is important to note that Gold tends to Trade within Daily chart's Bollinger Bands and only visible variable for determination of the rule was November #10 peak which was instantly Sold and Price-action continued to Trade within Bands. Regarding current Price-action, I am not Trading this until #1,832.80 breaks firmly. However, Higher Inflation reading should be negative for the DX and positive for Gold and vice-versa. That is on the Short-term. On the Medium-term though, as long as the Bond Yields are Bullish Trading above its Daily chart’s #MA50, Gold's sentiment will be Sell on every major peak rejection for an end of Year Target of #1,588.80 or below.
My position: Gold is dangerously approaching the Support levels which I have been mentioning, and yet again Fundamentally driven rise is altered by a strong Hourly 4 engulfing candle (remember, Inflated aggressive rise will be equally strong when Selling sentiment appears, where Price-action will print equally aggressive decline prior to such rise). However, every #1,830.80 - #1,832.80 rejection can be treated as an Buying opportunity (towards #1,842.80 strong Resistance cluster) so Sellers should be careful with their entry point. I will engage only if #1,830.80 breaks, Targeting #1,811.80 Selling extension, exceeding my Profits run to #11 in a row.
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- Few other un-official channels are not mine, they are copies using my real information (impersonating me and my work / identity) so keep that in mind and beware of those.
