My outlook postponed / Gold in Neutral Rectangle

Gold's general commentary: Despite Bearish candle sequence on Bond Yields (breaking the #1.702 Resistance), not the best responses of Gold regarding Bearish accumulation as it was on # +0.09% Daily Price-action throughout almost whole session, answer to an Wednesday’s decline, as it should be considerably Lower (Technically, below #1,800.80 psychological barrier). Gold was ignoring skyrocketing Yields and possible Cup and a Handle formation, visible on DX chart. The E.U. session delivered Higher opening yesterday, as the Price-action is pulling back on a steady rate towards the #1,827.80 Resistance. Things will get dangerous for Buyers if #1,812.80 - #1,815.80 level breaks, as the #1,810.80 has been untouched for more than #15 sessions. Gold was Trading within Higher High belt and practically, Double Bottom on Daily chart (W shaped) was the Support for the aggressive Buying run which is near completion. One more push towards the Resistance on Bond Yields, in my opinion will be enough for Selling sequence on Gold. All my previous points remained unchanged.


Technical analysis: Clear IHaS (Inverse Head and Shoulders) pattern on (#1W) Weekly chart regarding Bond Yields, as U.S. Treasury attempts to limit the rise at all costs as their main aim is not to hyper-Inflate the economy. Inflation chart is up on a mere # +4.00% (in the same time representing ATH values), but Gold is ignoring strong Selling pressure and remains on Spinning Top’s (usual indecision candles) and continuing the idle moves. It is my belief that Investors are unwilling to commit before the full scale Support break, and as an result, Volatility kicked in. Personally, I am highly surprised regarding the yesterday’s session turn of the events as Support break and Lower High test was on the cards - Price-action reversed on an almost #10 point uptrend since Yields got rejected on Double Top formation. No Daily changes so far after a very flat U.S. session opening on traditionally Volatile Hourly 4 candles. I can easily spot on Hourly 4 chart how the current slow falling consolidation is repeating the pattern of November #26 - December #5. As discussed, the statistics on how non-Technical sessions affect Gold are usually changeable. One of the most Volatile Trading week was yesterday's one, according to the Historical Data with a #82.70% point differential on Daily chart, also seen by the wide margin (Neutral) on mostly all Hourly charts. Gold enters a Neutral belt in my book and should reveal underlying Trend as Monday's U.S. session approaches. Technical analysis cannot be immediately effective on such high Volatility levels so, as I said, I will patiently wait for Breakout of #1,827.80 where I will Sell on spot again pursuing #1,800.80 with my Selling orders. Technically Daily chart formed Spinning Top’s candlestick formation and got rejected on #1,813.80 so gradually Gold was building it’s way to Higher levels. If Gold don't break #1,827.80 on Monday, it is going to be a ranged session but if it does, I may see a quite Bearish session on the aftermath.


My position: I was riding the Selling breakout from #1,818.80 towards #1,792.80, but Gold ignored all Bearish factors and stayed ranged for the session (almost #11 hours between #1,812.80 - #1,822.80). I have closed my order on almost breakeven near session closing as market speculators decided not to dump Gold ahead of the next week. I will patiently wait for another chance to Sell Gold (as instructed above) as I am not interested in Buying on Short and Medium-term.