Sell order activated / Gold remains under heavy pressure
Gold's general commentary: Surprising market reaction on faster rate hikes and Bond Yields Buying acceleration program (U.S. Senate agreed for lifting debt ceiling even further) and for this kind of Price-action sentiment I have only one explanation from Technical side, strong rejection came from Oversold levels and RSI was rejected and Daily chart's Descending Channel neckline. In the same manner regarding the Daily chart, Gold is Trading near Support cluster #1,800.80 - #1,806.80 and by breaking it, Gold will confirm Three Drives pattern on Daily chart and evident Selling sustainability bias. Technically, MACD on Hourly 4 chart already indicates that Selling is near exhaustion, as in my outlook, all depends on correlating asset (DX) currently Trading on mild Intra-day losses as I will keep an eye on both charts. Personally, after such Fed’s announcement, Gold should be significantly Lower under the circumstances. #1,817.80 configuration was broken on #1 try, but spike was recovered instantly and engaged the #1-session recovery (Friday).
Technical analysis: Since all this is developing on near the Medium-term Support zone, market speculators are preventing the full scale oscillation towards #1st Lower Low extension. I see no space for further Buying, as everything is set for yet another Selling sequence on Gold and multi-Month Bearish cycle ahead. However, after monitoring the Price-action almost all E.U. session, I am confident with decision to enter the market, especially since I expect Gold to remain under heavy pressure as long as DX is Trading on local peak's. The Price-action is expected to lose more within the Hourly 4 chart's Descending Channel ready to convert into Dead Cat bounce pattern as the market prepares for this week's heavy macro-economic reports. Overall the Hourly 4 chart is very close to the Oversold zone and Technically should have a relief rally towards #1,827.80 former Resistance zone at least but it all really depends on DX movements. Even though Gold is Technically calling for recovery candles, these are Fundamentally driven sessions and I will give advantage to DX correlation rather to approach Technically. Personally, above #1,818.80 test and break on one try / hit, Buyers may arise where Price-action may fill #1,827.80 Intra-day, while #1,800.80 psychological barrier break can extend the Selling sequence towards #1,778.80 extension (my current Target).
My position: I have to add here that at the moment Gold is suffering more from the miraculous DX rally and less from the Bond Yields developments. I have engaged my Selling order few moments ago with #1,807.80 as an entry point. My optimal Target is #1,778.80 Selling extension.
Technical analysis: Since all this is developing on near the Medium-term Support zone, market speculators are preventing the full scale oscillation towards #1st Lower Low extension. I see no space for further Buying, as everything is set for yet another Selling sequence on Gold and multi-Month Bearish cycle ahead. However, after monitoring the Price-action almost all E.U. session, I am confident with decision to enter the market, especially since I expect Gold to remain under heavy pressure as long as DX is Trading on local peak's. The Price-action is expected to lose more within the Hourly 4 chart's Descending Channel ready to convert into Dead Cat bounce pattern as the market prepares for this week's heavy macro-economic reports. Overall the Hourly 4 chart is very close to the Oversold zone and Technically should have a relief rally towards #1,827.80 former Resistance zone at least but it all really depends on DX movements. Even though Gold is Technically calling for recovery candles, these are Fundamentally driven sessions and I will give advantage to DX correlation rather to approach Technically. Personally, above #1,818.80 test and break on one try / hit, Buyers may arise where Price-action may fill #1,827.80 Intra-day, while #1,800.80 psychological barrier break can extend the Selling sequence towards #1,778.80 extension (my current Target).
My position: I have to add here that at the moment Gold is suffering more from the miraculous DX rally and less from the Bond Yields developments. I have engaged my Selling order few moments ago with #1,807.80 as an entry point. My optimal Target is #1,778.80 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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