Gold on healthy Bullish Technicals / #1,952.80 on Buyer's aim
Gold's general commentary: Since #1,900.80 psychological mark held as a Support on multiple occasions, Gold Naturally found more Short-term Buyers and should test the #1,933.80 Resistance levels once again with #1,952.80 psychological benchmark representing maximum extension. Gold invalidated newly forming Double Top formation which I spotted throughout the Trading week and creating firm ground for Buying sequence in extension. Daily chart should turn Overbought near those levels (Williams% already in deep Overbought territory), many similarities with late June to mid-July (consolidation within #1,440.80 - #1,380.80) I expect to be repeated once the Top is priced in and Price-action finally finds a Resistance.
Fundamental analysis: Correlation works great at the moment as DX is isolated within Neutral Rectangle while Bond Yields are on mild uptrend (# +1.28%). Being able to spot a new movement before it happens is an important skill to have as an Investor. Adverse earnings and catastrophic events can be difficult to predict, but understanding how to handle it when they do occur is invaluable. The overall economy can throw signals from different angles without warning, so being able to interpret their underlying messages may preserve capital value in general.
About Technical analysis: Technical indicators are plentiful, so understanding which ones can support your directional predictions may equip you for a potential movement and Gold’s Short or Medium-term prediction. While it’s impossible to consistently predict when a movement might occur, it is Highly important to have a thorough understanding of how to analyze certain events if and when they transpire, allowing you to better protect your Trading account. That is why when I do spot mixed picture regarding Technicals and Fundamentals, I tend to remain on sidelines, as no Trade is a Trade aswell. Back to Technicals, Gold is on healthy Bullish Technicals even though Overbought levels, however, correction had to take place first then #1,952.80 psychological benchmark test in extension which I announced as an Medium-term Target many times throughout my remarks.
Technical analysis prior to Gold's Price-action: Despite the strong Bearish candle sequence on DX, Gold remains Neutral-Bullish and above my Support for the day as the U.S. session is approaching and recession fears resurfacing. However, #1,917.80 is new / old Support zone made by the Hourly 4 chart’s candlestick configuration. Gold is still not pulling back again after it failed to break above it’s Higher High’s Upper zone on the Hourly 4 chart. Still I got confirmation for Short-term opportunity and it is still worth entering the market but not without tight Risk management (all correction attempts are rejected due Fundamental Buying pressure). Due Chinese New Year, you saw thin Volume throughout Asian session. My Buying bias is unchanged as I will treat Bearish spikes as an oscillation from Overbought to Neutral (Williams%), which may create new space for aggressive Bearish takedown once the local Higher High's peak is Priced in (#1,942.80 configuration or above). Gold is extending the sideways action, following the continuation of the former Hourly 1 chart’s Ascending Channel, as Bond Yields are on gains for #3-consecutive sessions (still however market didn’t returned to normal Trading conditions), current environment is Gold friendly (recession fears, safe-havens such as Gold are in High demand, hawkish Fed stance). Spot how Gold's strong Selling level of the #1,917.80 - #1,921.80 zone is far from fair symmetrical manner with disastrous side Swings on Bond Yields and DX as my strongest correlation so far, but currently both assets were on Short-term uptrend (DX reversing since #1-session horizon) while Gold is aswell soaring, fractal that was last seen on September #2012 Year, messenger of strong unprecedented Volatility.
My position: I am Highly sceptical, and having strong reservations of current Gold’s correction in extension (since Weekly Low's rejection attracted Buyers and Gold is Trading on healthy Technicals) as I don’t believe that Sellers will see continuation of it (only if market closes the session below #1,900.80 psychological benchmark). Therefore, Buying order with #1,922.80 entry point is my pick and optimal Target for the sequence is #1,952.80 psychological benchmark.
Fundamental analysis: Correlation works great at the moment as DX is isolated within Neutral Rectangle while Bond Yields are on mild uptrend (# +1.28%). Being able to spot a new movement before it happens is an important skill to have as an Investor. Adverse earnings and catastrophic events can be difficult to predict, but understanding how to handle it when they do occur is invaluable. The overall economy can throw signals from different angles without warning, so being able to interpret their underlying messages may preserve capital value in general.
About Technical analysis: Technical indicators are plentiful, so understanding which ones can support your directional predictions may equip you for a potential movement and Gold’s Short or Medium-term prediction. While it’s impossible to consistently predict when a movement might occur, it is Highly important to have a thorough understanding of how to analyze certain events if and when they transpire, allowing you to better protect your Trading account. That is why when I do spot mixed picture regarding Technicals and Fundamentals, I tend to remain on sidelines, as no Trade is a Trade aswell. Back to Technicals, Gold is on healthy Bullish Technicals even though Overbought levels, however, correction had to take place first then #1,952.80 psychological benchmark test in extension which I announced as an Medium-term Target many times throughout my remarks.
Technical analysis prior to Gold's Price-action: Despite the strong Bearish candle sequence on DX, Gold remains Neutral-Bullish and above my Support for the day as the U.S. session is approaching and recession fears resurfacing. However, #1,917.80 is new / old Support zone made by the Hourly 4 chart’s candlestick configuration. Gold is still not pulling back again after it failed to break above it’s Higher High’s Upper zone on the Hourly 4 chart. Still I got confirmation for Short-term opportunity and it is still worth entering the market but not without tight Risk management (all correction attempts are rejected due Fundamental Buying pressure). Due Chinese New Year, you saw thin Volume throughout Asian session. My Buying bias is unchanged as I will treat Bearish spikes as an oscillation from Overbought to Neutral (Williams%), which may create new space for aggressive Bearish takedown once the local Higher High's peak is Priced in (#1,942.80 configuration or above). Gold is extending the sideways action, following the continuation of the former Hourly 1 chart’s Ascending Channel, as Bond Yields are on gains for #3-consecutive sessions (still however market didn’t returned to normal Trading conditions), current environment is Gold friendly (recession fears, safe-havens such as Gold are in High demand, hawkish Fed stance). Spot how Gold's strong Selling level of the #1,917.80 - #1,921.80 zone is far from fair symmetrical manner with disastrous side Swings on Bond Yields and DX as my strongest correlation so far, but currently both assets were on Short-term uptrend (DX reversing since #1-session horizon) while Gold is aswell soaring, fractal that was last seen on September #2012 Year, messenger of strong unprecedented Volatility.
My position: I am Highly sceptical, and having strong reservations of current Gold’s correction in extension (since Weekly Low's rejection attracted Buyers and Gold is Trading on healthy Technicals) as I don’t believe that Sellers will see continuation of it (only if market closes the session below #1,900.80 psychological benchmark). Therefore, Buying order with #1,922.80 entry point is my pick and optimal Target for the sequence is #1,952.80 psychological benchmark.
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- Few other un-official channels are not mine, they are copies using my real information (impersonating me and my work / identity) so keep that in mind and beware of those.
