Engaging my Selling order / #1,877.80 on the cards
Gold's general commentary: Gold made a strong Technical decline provided by the Daily chart’s size Bearish spike. Candle is still open of course as rebound on DX is the reason behind it and #1,892.80 breakout condition has huge chances to be met and continue all the way towards #1,877.80 in extension if DX continues with the #5-session gains. The Hourly 4 chart delivered an evident pullback formation and now is Trading on Lower High’s Lower zone pressure point for the first time since the current peak’s. However, Daily chart switched back to Neutral state which is a good sign for Short-term Gold Buyers and is aiming at the #1,917.80 (former Support zone) Technical Gap fill which is roughly near Hourly 1 chart’s Lower High’s zone (less chances for that fractal to develop). Assuming it takes more than #1 - #3 sessions to reach this level, then this is also where the Hourly 1 chart will be so it is a good benchmark and first Short-term Target once Gold achieves #1,910’s peak. However, don't expect any significant fall / decline in continuation on Gold if DX doesn't rise aswell. On the other hand, the DX almost filled the Bullish Gap fill (many similarities with February #20 Bearish Gap, just on the other side) as any further uptrend from now on DX should be adding heavy Bearish pressure on Gold. Regarding Yields, personally I don’t expect current weak number state to last as Fed has to push Bond Yields upwards as Inflation is on critical levels. Market closing below #1,900.80 psychological benchmark constitutes Selling in continuation. I am expecting Intra-day Selling candles to arrive on Gold, testing #1,877.80 - #1,882.80 belt Intra-day.
Technical analysis: Constant DX uptrend is postponing any meaningful recovery model on Gold, and the fact that Gold still didn't exposed full Selling potential testing Higher Low's, leads me to believe that Selling is in continuation. However the Hourly 4 chart’s Technicals suggest that if #1,900.80 breaks, (the Hourly 1 chart’s Ascending Channel is invalidated) and Gold should test the #1,877.80 and #1,861.80 in extension. It is highly important to note, statistically / when Gold Trades on such configuration (ignoring Bond Yields mostly and follow DX diagonally) Volume for #7 - #17 sessions, aggressive decline occurs on the aftermath. (September #14 - #21, October #1 - #6, October #8 - #13 #2020. fractal on Hourly 4 chart), as I don’t see reason why Gold shouldn’t repeat it’s cycle. When the Daily chart’s Ascending Channel’s rejection point turns into strong Resistance (rejecting any recovery attempt since late September), Gold tends to pull back roughly #90 points (#1,916.80 - #1,903.80, as it did on August #20 - #27, #2020). This Price action is beyond doubt not related to the essential Technical rules, so I’ll approach with extreme care, as any rules do not apply on such sessions, where it is important to follow and look for pointers on main correlating instruments. As discussed, unless the Hourly 4 chart’s Resistance breaks at #1,917.80, I can't be expecting a sustainable rebound. Personally, I believe these are the right circumstances for Gold to test the Daily chart's #1,877.80 extension again.
My position: I have engaged my Selling order with #1,901.80 as an entry point, Targeting #1,877.80 in extension. I still see no Gold's recovery elements.
Technical analysis: Constant DX uptrend is postponing any meaningful recovery model on Gold, and the fact that Gold still didn't exposed full Selling potential testing Higher Low's, leads me to believe that Selling is in continuation. However the Hourly 4 chart’s Technicals suggest that if #1,900.80 breaks, (the Hourly 1 chart’s Ascending Channel is invalidated) and Gold should test the #1,877.80 and #1,861.80 in extension. It is highly important to note, statistically / when Gold Trades on such configuration (ignoring Bond Yields mostly and follow DX diagonally) Volume for #7 - #17 sessions, aggressive decline occurs on the aftermath. (September #14 - #21, October #1 - #6, October #8 - #13 #2020. fractal on Hourly 4 chart), as I don’t see reason why Gold shouldn’t repeat it’s cycle. When the Daily chart’s Ascending Channel’s rejection point turns into strong Resistance (rejecting any recovery attempt since late September), Gold tends to pull back roughly #90 points (#1,916.80 - #1,903.80, as it did on August #20 - #27, #2020). This Price action is beyond doubt not related to the essential Technical rules, so I’ll approach with extreme care, as any rules do not apply on such sessions, where it is important to follow and look for pointers on main correlating instruments. As discussed, unless the Hourly 4 chart’s Resistance breaks at #1,917.80, I can't be expecting a sustainable rebound. Personally, I believe these are the right circumstances for Gold to test the Daily chart's #1,877.80 extension again.
My position: I have engaged my Selling order with #1,901.80 as an entry point, Targeting #1,877.80 in extension. I still see no Gold's recovery elements.
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- Trading Gold since #2012'.
- I do provide professional Gold consulting (signals and financial advice) and Gold Trading school.
- Trading Gold since #2012'.
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