Gold within Neutral Rectangle but above Symmetrical Triangle

6 wrz 2022

Gold's general commentary: Gold is Trading above the late-August trendline above the Higher Low’s Upper zone as expected, however as the Price-action got too close and almost tested #1,700.80 configuration, it pulled back in form of a rebound and Hourly 4 chart turned Neutral again. If Bullish Short-term trend is to get extended on the Medium-term too (sustainable), then Price-action must preserve #1,700.80 mark to hold as a Support. Technically the Descending Channel broke upwards last week and that should be enough to kick-start a stronger rebound but Fundamentally, Gold is a Selling option. Technically, I am also considering the #1,712.80 - #1,715.80 first Resistance belt, ahead of #1,721.80 and #1,730.80 Resistance clusters as a hard barriers which will most likely negate every Buyer’s intent and reverse the Price-action and keep an eye both on the DX mostly and the Bond Yields, both of which are holding their Short-term Support zones intact. This is surely undisputed Bearish Medium-term trend and every rise towards Resistance cluster should be Sold towards #1,700.80 extension. As long as Euro is losing against major currencies DX will benefit so practically Buying Gold on both and Short and Medium-term is not advisable (Trading against the Fundamentals). Personally, I still have #1,700.80 mark as an Short-term Target and Medium-term Target is seen Trading at #1,678.80 (could be tested within #5 sessions). Even though I am heavily on Selling side, Gold not losing value as much as DX, indicating elemental Volatile trend which is the sole reason I am off the markets aswell throughout the session.


Technical analysis: Hourly 4 chart has turned Neutral again as the Price-action pulled back from Friday's session Low’s, testing again the Hourly 4 chart’s #1,712.80 - #1,715.80 configuration which represents Short-term Resistance cluster. This move is due to the sudden spike on DX as the DX is moving in favour of Gold (falling) and was about to correct the former Bullish Gap fill which is appearing as a dangerous sign for Short-term Gold’s Sellers (one of the main reasons I remained on sidelines). This is a Fundamental market reaction to the High impact end of the week news and DX Trading near local High’s. I don't expect this pullback to last for too long, this is Technically an Selling opportunity. If one seek for more confirmation, then Selling only after #1,700.80 breaks is looking as an optimal opportunity. This shows that big Institutional capital speculate on the same strategy I apply, taking Profits on Low’s of the Descending Channel, causing Bullish spikes, which they later Short. However, the new Descending Channel needs to drop drastically throughout today's or tomorrow's session, otherwise the candles get off the trendlines channel. Moderate Target can still be #1,692.80 sequence once the #1,700.80 mark breaks but this time I will approach with more cautious strategy.


My position: As Hourly 4 chart points to the more gains on Gold and Daily chart is showcasing Bearish configuration on Gold, when those two are not in cohesion I rather remain on sidelines than with active order. I will sit out today's session aswell and monitor the Price-action from sidelines.