Gold is still Trading within Neutral Rectangle on Hourly 4 chart
Gold's general commentary: Gold bounced back well enough on the #1,980’s level (which is the former Weekly Resistance and filled nicely last week’s gap). On the Hourly 4 chart, Gold is using the #1,958.80 as a Support (see how it makes Lower High's on it), so that configuration may build up a new uptrend. I am expecting symmetrical retrace to the March #10 High's, #1,984.80 and #1,992.80 Bullish values (also due to the critically Overbought Hourly 4 chart), Traders witnessed yesterday's session mild correction. Also, spot how the RSI on Hourly 4 chart has reached its Short-term Resistance and remains on a Descending Channel since April #13 High's. Gold is still on High levels of the recent downtrend despite DX approaching and invalidating its October Resistance, as Stock markets but mostly Bond Yields market have dipped (corrected recent gains) more than (# -2.00%) of the March aggressive gains. See how Gold is basically consolidating within Neutral Rectangle on the Hourly 4 chart, which is normal ahead of next week’s High impact Fundamental announcements which should be Bearish for DX, since it represents sole reason why Gold is ranged and not soaring more. The fact that Gold has kept its Bullish momentum on the Daily chart despite the Overbought levels, reveals the Bullish underlying Short-term trend. I remain Bearish on Medium-term, waiting for Bullish configuration to reach the Top and then continue Selling Gold on Monthly fractal. If I had to guess regarding today's session, side Swings on both sides without a major move, within #1,958.80 - #1,980.80 belt. Daily curve for now is practising Neutral values and usually this Technical setup points to new Bullish breakout.
Technical analysis: With DX losing with every Hourly candle, Gold's fair value would be around #1,980.80 according to the correlation. Still the #1,980's Weekly Top, is a Higher High's peak on the Daily chart's Ascending Channel, providing me a more comfortable position to await and book the Profits on final Buying order towards multi-Month High's (once it appears). Always remember to stay within the trend by identifying non-Technical fluctuations based on correlating instruments that can provide great Trading opportunities. I spotted many similarities before as during the Fed rate hike on #2017 Year. I mentioned on my remarks how Fundamentals can momentarily distort Technical trends, as a seemingly Bearish Hourly 4 candle will close in positive fashion. Keep in mind that on every Fundamental catalyst reaction - the more Price-action rises, the steeper the fall will be (or vice-versa). Bullish Daily chart's trend of the Ascending Channel still weighs but on predominantly Neutral bias, since Gold is still above the #1,958.80 - #1,965.80 High Volatility variance. If my Weekly regressional analysis is correct on a future Bearish Weekly candle succession, then #2,000.80 psychological barrier is very own maximum out of current Bullish action and Trading would be performed way below #1,952.80 barrier and finish the May's fractal in losses (even below #1,900.80). Personally, the proposed Channel which I mentioned in my previous posts is still dominating the Trade. Since then a Monthly Engulfing Bullish Reversal candlestick negated most of those losses, as the EPS by Citigroup, Wells Fargo and JPMorgan beat the estimates, spurring excitement on Wall Street, making Investors relocate again their capital from riskier assets to Gold. Despite all this, Gold is still a Buying option, as since breaking wall of Resistances has largely negated the negative bias of the previous #4 weeks, forming Ascending Channel on Daily chart practically cancelling out the Higher Low's. Gold's greatest “success” this Trading week was posting it's first Weekly candle with gains since #3 straight on heavy losses. If #1,980.80 Resistance breaks once again, Gold will be looking to fill the #1,998.80 contact point as my final Target out of this Bullish cycle.
My position: Once the Higher High's peak is reached, expect a corrective drop towards #1,952.80 barrier firstly (might be tested on aggressive decline, Intra-day basis) as equity holders digest the news and will evaluate their strategy. Gold clearly accumulated all the panic capital from DX and Stock markets and we are bound to give some back. My Hourly 4 chart's indicators still provide the safe Buying zone as they still haven't readjusted to the over-night Neutral values. Approach current session with extreme caution and keep an eye on Hourly 4 chart turning Bearish sessions ago. Gold is far from breaking Daily chart's Ascending channel completely (confirmation). Since I do not expect much from today's session and as I am more than satisfied with my current Trading results, I will take early weekend break.
Technical analysis: With DX losing with every Hourly candle, Gold's fair value would be around #1,980.80 according to the correlation. Still the #1,980's Weekly Top, is a Higher High's peak on the Daily chart's Ascending Channel, providing me a more comfortable position to await and book the Profits on final Buying order towards multi-Month High's (once it appears). Always remember to stay within the trend by identifying non-Technical fluctuations based on correlating instruments that can provide great Trading opportunities. I spotted many similarities before as during the Fed rate hike on #2017 Year. I mentioned on my remarks how Fundamentals can momentarily distort Technical trends, as a seemingly Bearish Hourly 4 candle will close in positive fashion. Keep in mind that on every Fundamental catalyst reaction - the more Price-action rises, the steeper the fall will be (or vice-versa). Bullish Daily chart's trend of the Ascending Channel still weighs but on predominantly Neutral bias, since Gold is still above the #1,958.80 - #1,965.80 High Volatility variance. If my Weekly regressional analysis is correct on a future Bearish Weekly candle succession, then #2,000.80 psychological barrier is very own maximum out of current Bullish action and Trading would be performed way below #1,952.80 barrier and finish the May's fractal in losses (even below #1,900.80). Personally, the proposed Channel which I mentioned in my previous posts is still dominating the Trade. Since then a Monthly Engulfing Bullish Reversal candlestick negated most of those losses, as the EPS by Citigroup, Wells Fargo and JPMorgan beat the estimates, spurring excitement on Wall Street, making Investors relocate again their capital from riskier assets to Gold. Despite all this, Gold is still a Buying option, as since breaking wall of Resistances has largely negated the negative bias of the previous #4 weeks, forming Ascending Channel on Daily chart practically cancelling out the Higher Low's. Gold's greatest “success” this Trading week was posting it's first Weekly candle with gains since #3 straight on heavy losses. If #1,980.80 Resistance breaks once again, Gold will be looking to fill the #1,998.80 contact point as my final Target out of this Bullish cycle.
My position: Once the Higher High's peak is reached, expect a corrective drop towards #1,952.80 barrier firstly (might be tested on aggressive decline, Intra-day basis) as equity holders digest the news and will evaluate their strategy. Gold clearly accumulated all the panic capital from DX and Stock markets and we are bound to give some back. My Hourly 4 chart's indicators still provide the safe Buying zone as they still haven't readjusted to the over-night Neutral values. Approach current session with extreme caution and keep an eye on Hourly 4 chart turning Bearish sessions ago. Gold is far from breaking Daily chart's Ascending channel completely (confirmation). Since I do not expect much from today's session and as I am more than satisfied with my current Trading results, I will take early weekend break.
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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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