Sell order activated / Recovery near exhaustion
Updated
Gold's general commentary: There is a very important pattern formed regarding Daily chart, Dead Cat bounce. It is typically a Bearish candles in succession pattern but since #1,827.80 is about to be broken within just few Hours ago, I should be very cautious as the news for the rest of the week will create a very Volatile setting to Trade on. As a result, with Hourly 4 chart critically Bearish, I will only Trade the breakout on its benchmark levels: if #1,814.80 (ahead of session Low’s) breaks, I will re-Sell towards #1,797.80 below #1,800.80 psychological barrier while if #1,837.80 get’s re-tested (currently slim chances) it negates Selling potential. I hold new Selling order at the moment.
Technical analysis: Technically, there is only #1 session left before the symmetry of the #5th Dead Cat bounce formation catches up and the Right Shoulder mimics the previous one in going downwards. However, there are new Fundamentals involved as last Month’s Fed results made the DX spike aggressively above the Daily chart’s #MA200 holding at the same time its Daily chart’s #MA50. This should be Bearish for Gold Long-term if it continues to be the case, as (like I've mentioned numerous times on my remarks), DX is negatively correlated with Gold (DX rival asset which on top of it’s Low risk, offer Gold). Technically, as long as #1,836.80 vicinity holds, Gold is more likely to test the Daily chart’s #1,800.80 barrier again and #1,788.80 Support (taken from current session Low’s). If it fails though the upside gap is significant and can extend the way towards the #1,827.89 - #1,831.80 Resistance cluster. Gold is on cyclical downside, pricing Top’s (April #18, April #29, May #5, May #11 and current session) which are later on translated into Dead Cat bounce formation on bigger chart’s. This indicates that Gold should price a Top here (temporary or not) and test #1,800.80 psychological barrier once again. Buyers should be extra careful by engaging any additional Buying order at this point.
My position: I have engaged my Selling order currently on #1,827.80 Resistance (#1,827.80 is my entry point), Targeting #1,800.80 psychological barrier. However if Intra-day recovery continues and tests and breaks #1,837.80 on one try / hit, Selling potential is invalidated.
Technical analysis: Technically, there is only #1 session left before the symmetry of the #5th Dead Cat bounce formation catches up and the Right Shoulder mimics the previous one in going downwards. However, there are new Fundamentals involved as last Month’s Fed results made the DX spike aggressively above the Daily chart’s #MA200 holding at the same time its Daily chart’s #MA50. This should be Bearish for Gold Long-term if it continues to be the case, as (like I've mentioned numerous times on my remarks), DX is negatively correlated with Gold (DX rival asset which on top of it’s Low risk, offer Gold). Technically, as long as #1,836.80 vicinity holds, Gold is more likely to test the Daily chart’s #1,800.80 barrier again and #1,788.80 Support (taken from current session Low’s). If it fails though the upside gap is significant and can extend the way towards the #1,827.89 - #1,831.80 Resistance cluster. Gold is on cyclical downside, pricing Top’s (April #18, April #29, May #5, May #11 and current session) which are later on translated into Dead Cat bounce formation on bigger chart’s. This indicates that Gold should price a Top here (temporary or not) and test #1,800.80 psychological barrier once again. Buyers should be extra careful by engaging any additional Buying order at this point.
My position: I have engaged my Selling order currently on #1,827.80 Resistance (#1,827.80 is my entry point), Targeting #1,800.80 psychological barrier. However if Intra-day recovery continues and tests and breaks #1,837.80 on one try / hit, Selling potential is invalidated.
Trade closed manually
DX on decline may add significant Buying pressure on Gold. My order closed on breakeven.
- My official and only Telegram Channel: t.me/goldenBear88
- 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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