Gold Trading on Inflated Prices / Aggressive correction ahead

Gold's general commentary: Gold has started pulling back on Hourly 4 chart as Bond Yields (above #2-Year High’s) began to recover a big portion of last week's losses, which should constantly apply Selling pressure on Gold, but surprisingly, it had less or no impact on current's Price-action. DX just went above its #50% Fibonacci level (#95.80 posing as an Resistance cluster) but Gold is still above (surprisingly) its Hourly #4 chart’s Support. This is merely expected as Gold is always lagging on similar situations when Bond Yields recover and Gold’s parked capital is invested back into the equity markets. Because of this lag, I expect a (# -2.00%) Daily candle in the coming sessions as long as #1,832.80 breaks. With current Technical and Fundamental configuration, Gold should not stay as High, as it is Natural to expect values below #1,800.80 psychological barrier ahead. I need to mention again that the DX Price-action movement should always be considered and such imbalances between correlating instruments should always be taken advantage of (current situations are very rare that Gold Trades against correlations). Gold acting as a safe-haven these last few sessions is a fantastic Selling opportunity which I will be utilizing to its maximum, but yet again, market speculators are preventing full Selling oscillation since late September, Buying back every Low, turning the movement into a rally towards Higher High’s peak (which are instantly Sold). Short-term Target are intact and are the same as in my previous posts / #1,800.80 and #1,792.80 variance in extension.


Technical analysis: Gold continues the unexplained recovery candles throughout the yesterday's U.S. session opening, able to convert into full scale Ascending Channel on Daily chart, breaking the Quadruple Top without a valid cause. Despite Weekly chart’s (#1W) recovery on Bond Yields, Gold remains enormously High, relative to the circumstances. On the other hand, Gold failed to preserve it’s downside presence, forcing the Hourly 4 chart near it’s Channel Support (taken from the #1,806.80 Weekly Low’s), which was Bought aggressively without valid cause throughout Tuesday’s session on more than #10 point spike. This confirms my thesis that market speculators are preventing full scale downtrend for more than #90 sessions. The break of the current Hourly 4 chart’s Resistance zone (now likely to offer stiff Support) has an initial upside of #1,852.80 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, and what is the trick at the moment / current movement had no viable catalyst). Ultimately, a retest further to the upper value of Support zone (#1,821.80 - #1,823.80) maximum till end of the week is surely an option, as January #5 - March #9 Selling sequence should be 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 #1,766.80 Support (Medium-term) on the Hourly 4 chart, as I mentioned is favoured, Targeting the #1,727.80 Lower Low extension which will give 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 (regarding Short-term), 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 #2 sessions, I won’t make any more Short-term picks as I will wait for confirmed signal. With DX Trading comfortably above the Resistance zone and Bond Yields on #2-Year High’s, Gold tested the Support and reversed on more than #27 points Intra-day without any catalysts. I still cannot find what was the catalyst behind Tuesday’s and yesterday’s sessions aggressive Bullish spikes.


My position: As Gold is Trading on Inflated Price-action, as the aggressive the uptrend is, so will be the correction (once the correction starts, expect Intra-day aggressive decline). If #1,852.80 breaks, Gold will most likely connect with #1,882.80 extension, while if #1,832.80 Support breaks, Gold will test #1,812.80 cluster Intra-day. I am not willing to Buy Gold unless #1,852.80 breaks, as Fundamentally driven sessions can be reversed and altered anytime. I will await #1,832.80 sustainable break to make my move. I am more than satisfied with my Trading results for current fractal (#10 Profits row and #2 Stop-loss hits).