Gold to extend the downtrend / #1,762.80 on the cards

17 Şub 2021

Gold's general overview: Gold had a Double Top formation (Xau-Usd in my focus) on yesterday's Asian market opening and naturally the market reacted with a rejection. The pullback can extend as Low as the #1,762.80 on Daily chart, with #1,783.80 Support break which will trigger my Selling order. The real news are already digested by market so don't be surprised if you see thin Volume on Wall Street's opening, followed by Volatility. If #1,800.80 fails to hold, #1,808.80 is the next Resistance and expect a Higher Low at #1,827.80, decent re-Sell zone if #1,827.80 holds. Gold is bound to give one more Lower Low extension before the Bullish trend resumes.


Technical analysis: January Low was touched the Hourly 4 Support and rebounded back towards #1,808.80 throughout yesterday's session (Xau-Usd numbers on my focus) making a Lower Low. Another red Hourly 4 candle (yesterday's market closing below #1,800.80 as discussed) now could engage a Bearish sequence which may end up in a new Lower Low zone extension near #1,762.80. The Volatility is High though both on DX and Bond notes, so it is best to observe the configuration on the Hourly 1 chart (which is Bearish) as it approaches the Hourly 1 second Support variance. If mentioned configuration gets invalidated (#1,783.80), I expect at least #1,762.80 within #1 session. If not and #1,800.80 breaks instead, Price-action turns to Bullish again on Short-term towards #1,827.80 possibly (slim chances for that scenario to develop with DX on Buying sequence). So the balance is very tight and largely depends on the DX and U.S. Bond notes market recovery. I will not engage until I have clear breakout signal (will wait for #1,783.80 break), but as Weekly chart #MA50 (#1W) is invalidated (Trading currently near #1,818.80) I am giving more probabilities to the downside, as Weekly chart Moving Average is lately the benchmark for the Medium-term.


My position: If #1,783.80 breaks (or even few points below) it will trigger my Selling order towards #1,762.80, as I am heavily on Selling side, expecting deeper Sell-off on Gold.