Update: All That Glitters Is Not XAUUSD: 12 Bearish Signs

FX_IDC:XAUUSD   Gold Spot / U.S. Dollar
Upate from three days ago. XAUUSD-is still weak. It is down an additional 2% since then.
Here are ONE DOZEN negatives I see in-XAUUSD, and why I feel-Gold is a sell:

1. Multiple Sell Fractals in effect (red rectangle on chart).
2. Alligator jaws OPEN, feeding in down-trend. THIS IS YOUR DIRECTIONAL COMPASS.
3. Chop indicator (under chart) is in the shaded area. This indicates a ZERO trend and, at best, sloppy action with a downward bias.
4. Phase energy (lower top indicator) is heading LOWER. The action is below the zero line. Decidedly bearish .
5. DMI-(middle top indicator) has red (sell) as the dominant factor, and this bearish action is gaining strength as the (black) DMI-line rises.
6. Prices are trading BELOW the Ichimoku Cloud . This is a sell signal.
8. Prices are trading below the Ki jun-Sen baseline of the Ichimoku Cloud . This is a sell signal.
9. Prices are trading below the thick red Ichimoku Cloud conversion line. This is a sell signal.
9. The red Ichimoku Cloud conversion line direction is heading lower. This is a sell signal.
10. The Ki jun-Sen baseline of the Ichimoku Cloud direction is heading lower. This is a sell signal.
11. The CHOP ZONE indicator (under chart) is red, indicating a down trend.

12. 5/34 MACD (top) is heading lower.
My comments: very bearish signs. Decision: do not go long-XAUUSD. If you are short, maintain position.
Good luck to you. Don.
Thanks for the sharing and analysis, so bsed on the graph movement above, does Gold will be bearish until the US election result comes out ?
649bruno albertwt
I don't know if gold will be bearish until the elections. With the Fed and Bank of Japan decisions this week any negatives they announce may help gold in the short term. I monitor TREND, Fractals, and alligator direction as primary indicators.
The TREND, as indicated by CHOP and Directional Movement, is down.
Right now gold could zig-zag back and forth from $305 to $325, and that (to me) is not a low risk trade.
I just published a chart for SGEN with my own personal rules of engagement. Please look at this chart because the analysis for SGEN will work for gold.
Yes, the Ichimoku Cloud and candlesticks can be used to chart gold, but they will work better if you have an established trend. Don.
+1 Reply
albertwt 649bruno
Cool, many thanks for the update and explanation Bruno.
I appreciate your sharing here.
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