Gold rising as expected / #2,942.80 Resistance aheadTechnical analysis: As it is evident on my Technicals, Gold is Trading within an healthy Daily chart's Ascending Channel since December #31, #2,600.80 benchmark Bottom. Mentioned Channel has a clear Lower Low’s zone and Higher High’s zone. This is where a Long-term Trade Sells and aggressively Buy's respectively (this is an usual sign of aggressive Bull market). Now, since February #10, Price-action has put a temporary stop to the uptrend as it hasn't accomplished local High’s until now. That stop has formed the Daily chart’s Resistance area at #2,942.80 - #2,952.80 Resistance zone which basically represents the ideal Selling zone for the Short-term. The lack of a new aggressive Higher High's on local peak has made me believe that the time is approaching when Profit taking will be in progress and Gold might deliver more serious correction. But I will need to confirm with the former Higher High's Lower zone to break in order to confirm this Bearish break-out that may restore Short-term Selling bias. Today’s session outlook has a clear Ascending trend (Higher High's High's / Low's). If this Higher High's trendline gets invalidated, it will be the first sign that the Short-term trend is reversing (Lower). The candles may continue under the Lower High's zone but if the RSI breaks its line and makes a Higher High then this is what we call "Bullish Divergence".
Fundamental analysis: Price-action may eventually hit #2,942.80 local peak after newly formed Bottom as Gold soared again towards the #2,942.80 - #2,952.80 (protecting the neckline but still on Bullish gradient). The Hourly 1 chart’s Descending Channel and Seller's attempt is Technically invalidated however with an downside limit of #2,922.80 Support now and #2,942.80 on upside (in equilibrium between the two). Fundamental announcements are once again reviving Buyers with second report in succession missing the forecast adding huge Buying pressure on Gold’s Price-action due DX taking strong hits. However even though DX was on spiral downtrend, Gold didn’t soared as much as one expected however dip Buying strategy is most optimal in current market configuration.
My position: As I advised many times throughout my remarks, keep Buying every dip. My #2,922.80 entry point Buying order is up and running as instructed throughout yesterday's session however I will ideally close my order within #2,942.80 - #2,952.80 hard Resistance zone. If however Profit taking happens within that zone, I do believe Gold may deliver serious correction of #40 - #60 points. If however #2,952.80 benchmark gets invalidated and market closes above, expect #3,000.80 benchmark test early next week. Trade accordingly.
