Gold's general commentary: Gold continued the recovery candles throughout the E.U. session opening, able to convert into full scale Ascending Channel on Hourly4 chart. Despite Daily chart’s recovery on Bond Yields, Gold remains vigorously High, relative to current sessions. On the other hand, Gold failed to preserve it’s upside presence, forcing the Hourly 4 chart near it’s Channel Support (taken from the #1,752.80 Low). The break of the current Hourly 4 chart’s Resistance zone (now likely to offer stiff Support) has an initial upside of #1,800.80 psychological barrier on the Daily timeframe (remember to compare historical values since most of the configurations will repeat since market digestion of Fundamental events is mostly the same). Ultimately, a retest further to the upper value of Support zone (#1,774.80 - #1,778.80) maximum till end of the week is surely an option, as January #5 - March #9 Selling sequence is seemingly reproducing on the aftermath. On January #5 fractal Gold engaged the decline, Price-action stabilized within (then) #1,831.80 belt, where Gold delivered even more serious decline of almost #200 points towards #1,678.80 (my current point of interest). My focus is on the #1,750.80 Support on the Hourly 4 chart, as I mentioned is favoured, Targeting the #1,722.80 Lower Low extension which gives me the hint that current Bearish bias will be sustainable, if Price-action breaks it. An added bonus would be Price-action testing #1,800.80 firm barrier, delivering even stronger Selling signal at the retest, consequently identifying Sellers intent and also serving as a base to determine entry and risk levels. As Gold is Trading on irregular movements for more than #13 sessions, I won’t make any more Short-term picks as I will wait for confirmed signal.
Technical analysis: It is important to note that current DX decline added strong Buying pressure on Gold, but current #5 out of #5 aggressive Resistance breaks were ignored by Gold (market speculators preventing the downtrend), including the most late one, #52-Week High break, where Gold: not only altered the downtrend, Price-action was merely rising on such Fundamental which should be Highly Bearish for Gold, indicating strong unprecedented "unfair" Price-action, which I choose not to Trade. As discussed, (#1,678.70) is the Monthly Support zone since August #2012 and #1,722.80 break is awaited. The last break on that level caused Gold to drop to #1,180.70 (June #2013 and December #2013). I am expecting a symmetrical reaction and Bearish reversal on the long run towards #1,722.80 at first and #1,678.80 in extension, before regrouping. On a Daily basis Gold is still Overbought despite the nearly #35 point Price-action fluctuation throughout yesterday's session, indicating the inflated levels Gold is Trading on. My practical advice is to remain off the markets for current session.
My position: As I am more than satisfied with acquired Profit and my capital in general, I will choose to not Trade this Volatility, as I am on sidelines for more than #2 sessions. I will wait for #1,778.80 clear break where I will Sell on spot, while closing above #1,800.80 psychological barrier, constitutes recovery continuation. When Gold engages the Bearish correction, #100 point decline will surely be on the cards (within a week), as Gold will surely wipe out inflated candles and continue with fair Technical trend. I am not interested in Buying Gold.
Technical analysis: It is important to note that current DX decline added strong Buying pressure on Gold, but current #5 out of #5 aggressive Resistance breaks were ignored by Gold (market speculators preventing the downtrend), including the most late one, #52-Week High break, where Gold: not only altered the downtrend, Price-action was merely rising on such Fundamental which should be Highly Bearish for Gold, indicating strong unprecedented "unfair" Price-action, which I choose not to Trade. As discussed, (#1,678.70) is the Monthly Support zone since August #2012 and #1,722.80 break is awaited. The last break on that level caused Gold to drop to #1,180.70 (June #2013 and December #2013). I am expecting a symmetrical reaction and Bearish reversal on the long run towards #1,722.80 at first and #1,678.80 in extension, before regrouping. On a Daily basis Gold is still Overbought despite the nearly #35 point Price-action fluctuation throughout yesterday's session, indicating the inflated levels Gold is Trading on. My practical advice is to remain off the markets for current session.
My position: As I am more than satisfied with acquired Profit and my capital in general, I will choose to not Trade this Volatility, as I am on sidelines for more than #2 sessions. I will wait for #1,778.80 clear break where I will Sell on spot, while closing above #1,800.80 psychological barrier, constitutes recovery continuation. When Gold engages the Bearish correction, #100 point decline will surely be on the cards (within a week), as Gold will surely wipe out inflated candles and continue with fair Technical trend. I am not interested in Buying Gold.
- My official and only Telegram Channel: t.me/goldenBear88
- 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.
- 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.
