Keeping my Selling order / Gold Targeting #1,866.80 extension
Gold's general commentary: No changes so far after a very flat yesterday's U.S. session opening Bell. I can easily detect Hourly 4 chart how the current slow rising consolidation is repeating the pattern of November #26 - December #2. DX is, as expected is gaining with every Hourly candle (and that’s why you see Selling pressure on Gold) and Bond Yields were on parabolic downtrend testing the Daily chart’s Support zone, progressively adding Buying pressure on Gold visible on Hourly 1 chart. Resistance levels are close but of course it all really depends on the which side will prevail. Like I mentioned, the statistics on how such sessions affect Gold are Bearish. One of the most Volatile Trading sessions today according to the Historical Data with a #35.70 point differential on Daily chart, also seen by the wide margin (Oversold) on mostly all Hourly charts. Gold entered an Bearish period and should keep losing regardless of the outcome of the Fundamental announcements. Technical analysis cannot be immediately effective on such High volatility levels so, as I said, I will patiently wait for the next Daily candle. Even though Price-action is close to my Support zone, I decided to Trade this as Volatility is still High. I could afford the risk and keep my order over-night.
Technical analysis: The Price-action has achieved a temporary equilibrium on Hourly 4 chart, between #1,892.80 and #1,913.80 (roughly Gold is in Oversold waters) as it balances the Technically Bearish dynamics of Short-term and the Bullish Fundamental "fear factor". By my calculations, DX - sole Fundamental driver behind Gold’s potential decline continuation is not losing it’s strength (regarding Gold markets), if Gold closes today below #1,900.80 psychological barrier and does not open with a Bullish Gap fill, #1,850.80 barrier might be tested within #3 sessions. Last week, market appeared to have priced at least the gradual rate hike remarks by the Fed Chair. This should imply that even Fundamentally (besides the ever-growing Inflation) the trend on Gold should reverse Lower. The risk factor is not at it’s Highest level now, but I will still hold on to previous Selling bias and wait it out a bit more. At this point it is essential to either choose a range to Scalp or take a Medium-term position (what I always tend to do). I personally remain Bearish under the Daily chart’s Oversold signal of the past several sessions which suggests that Trading will continue to be performed within the #1,866.80 - #1,877.80 range until Descending Channel gets invalidated and DX well Supported on Daily chart.
My position: As discussed above, I will keep my Selling order engaged throughout yesterday's E.U. session. My entry point was / is #1,901.80, Targeting #1,866.80 Selling extension.
Technical analysis: The Price-action has achieved a temporary equilibrium on Hourly 4 chart, between #1,892.80 and #1,913.80 (roughly Gold is in Oversold waters) as it balances the Technically Bearish dynamics of Short-term and the Bullish Fundamental "fear factor". By my calculations, DX - sole Fundamental driver behind Gold’s potential decline continuation is not losing it’s strength (regarding Gold markets), if Gold closes today below #1,900.80 psychological barrier and does not open with a Bullish Gap fill, #1,850.80 barrier might be tested within #3 sessions. Last week, market appeared to have priced at least the gradual rate hike remarks by the Fed Chair. This should imply that even Fundamentally (besides the ever-growing Inflation) the trend on Gold should reverse Lower. The risk factor is not at it’s Highest level now, but I will still hold on to previous Selling bias and wait it out a bit more. At this point it is essential to either choose a range to Scalp or take a Medium-term position (what I always tend to do). I personally remain Bearish under the Daily chart’s Oversold signal of the past several sessions which suggests that Trading will continue to be performed within the #1,866.80 - #1,877.80 range until Descending Channel gets invalidated and DX well Supported on Daily chart.
My position: As discussed above, I will keep my Selling order engaged throughout yesterday's E.U. session. My entry point was / is #1,901.80, Targeting #1,866.80 Selling extension.
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- I do provide professional Gold consulting (signals and financial advice) and Gold Trading school.
- 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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