Gold will still remain under heavy pressure

Gold's general commentary: Despite the strong Bearish candle sequence throughout yesterday's early E.U. session (Gold was comfortably Trading below #52-Week Low’s), Gold remains Neutral and above my Support for the day as the U.S. session approached and geo-political tensions resurfaced. Personally, Price-action caught me by huge surprise Trading on one of the strongest Hourly 4 chart’s candles in #60 sessions, negating almost all losses that Gold delivered throughout the week. It was Natural to expect Short-term recovery (RSI cooling down Oversold levels) however one could not expect #2 strong Resistance zones to break without serious cause (#1,642.80 - #1,645.80 and #1,652.80 - #1,654.80). #1,662.80 is new / old Resistance zone made by the Hourly 4 chart’s candlestick configuration. Gold is trending upwards after it failed to break below it’s Lower Low’s variance which is posing as an strong Support zone and showcasing strong durability ahead of #1,588.80 extension. Still I haven’t got confirmation for Short-term opportunity and it is still not worth entering the market without tight Risk management.


Technical analysis: DX is correcting recent gains which priced a Top near local High’s while Bond Yields are Trading under multiple Bearish Gap which when are about to get filled should once again test #2-Month High’s, development which is Fundamentally Bearish for Gold. My Selling bias is unchanged as I will treat Bullish spikes as an oscillation from Oversold to Neutral (Williams%), which created new space for Bearish aggressive takedown. Gold is extending the sideways action, following the continuation of the former Hourly 1 chart’s Ascending Channel. See how Gold's strong re-Sell level of the #1,650.80 - #1,662.80 zone is in fairly symmetrical manner with disastrous side Swings on Bond Yields and DX as the strongest correlation so far, but currently both assets are on decline, fractal that last happened on September #2012 Year, messenger of strong unprecedented Volatility. I am Highly sceptical, and having strong reservations of current Gold’s miraculous recovery, as I don’t believe that Gold Traders will witness continuation of it. On the other side, there is no factor to push Gold downwards again since DX is back to Neutral Rectangle, so I will await for #1,643.80 Support break to make my move towards #1,633.80 and #1,620.80 in succession. Current sequence is similar to the September #24 - #28 pattern when a Double Bottom was made before the strong rebound. Also Gold's weakness was Highly correlated with the strength on DX and Bond Yields (both going Lower currently). Regardless, I am looking for full oscillation towards #1,600.80 mark, my main point of interests as consequently, current consolidation and another Bearish wave should come as no Technical surprise. #1,600.80 and #1.588.80 are my Medium-term Targets.


My position: As I have been holding my yesterday's session Selling order (from #1,640.80 configuration which was in decent Profit), I have engaged additional Selling entry with #1,620.80 as an entry point which backfired and was headed towards my Stop-loss. When Stop-loss was triggered I have closed original order (from #1,640.80) which was Trading on Profits and left me without any significant Profits for both sessions. I will re-Sell Gold if #1,643.80 breaks (Targeting #1,620.80 extension).