Gold on upside sequenceFundamental analysis: Yesterday’s session huge green Hourly 4 chart's candlestick pattern was an indication of increased tension and war / conflict escalation negativity as geopolitical tensions arise which invalidated Sellers intent and comforted Short and Medium-term Gold’s Buyers early on. Gold was once again on High demand as Investors used the metal as an traditional safe-haven asset where capital strongly flew into Gold, pushing the Price-action way above the #13-Month High’s. Gold was testing #2,665.80 (session High’s) and as (by my personal opinion) DX skyrocketed and engaged Short-term Buy-off rally which had no impact on Gold's Price-action and currently it is the question where market will be headed next. Gold was on hard Resistance levels and current consolidation levels (historical regression analysis) points that when Trading for Long on those levels, strong downside direction comes in form of #50 point + decline. Besides this, nothing else Supports the upward argument (except current High Impact factor) since all major charts turned critically Bearish on Short-term.
Technical analysis: #2,665.80 - #2,672.80 represents new / old Resistance and by my calculation chances for breaking it again without new news are Technically really impossible (too far fetched and without catalyst to take the Price-action towards those / current High’s). Investor’s strategy was clear where Gold was expected to Trade on huge gains, heavily pressured on speculations fuelled by current Fed aftermath. If I accept the similarities on past events, then I am looking for a reversal towards #2,652.80 benchmark again but not before a red Weekly candle (occurring at the moment). The Short-term Bearish bias (much needed correction ahead) calls for strong consolidation. Less Volatility on Hourly 4 chart guarantees clear direction on the next Daily candle (possibly mixed values regarding the trend #50% / #50%, as absence of further news and speculations may engage the steep correction on Gold). Day Traders have no other alternative with such distorted indicators than to look at (#30m) Bollinger bands which give.
My position: As stated ahead and announcing current strength of Gold throughout my yesterday's session commentary, I will not turn to Selling as Gold is now Overbought. If however #2,672.80 gets invalidated to the upside and market closes above, Bullish Short-term bias is restored.
