Closed my Set of Sells in excellent Profit, engaging Buy

3 Mar 2020

I have closed my Set of Sells with excellent Profit. Gold is so far holding the #1,580.70 Belt and Hourly 4 chart after pricing its Lower High, it is extending its Channel Up with #1,632.70 as the next Higher High Target. Despite another day of rebound on Stocks, Gold is less affected as it continues to be more tied to DX ( Gold # +0.28%, DX # -0.35%). Note how Gold holds it’s correlation with DX almost on every aspect (was with Stocks before). Buying pressure also comes from the global pullback on equities after the disappointing European PMI data who raise flags for a possible economic slowdown. Especially if the Existing Home Sales later this week also disappoint. I remain Bullish with my Target unchanged, but just to secure my capital and use every opportunity to spot most accurate pattern, I will carefully monitor my position in order to prevent unexpected scenarios. #1,570.70 is my Support and if broken I will act accordingly. Taking the DX in consideration, testing Support on yesterday, Gold struggled to generate much upside momentum. In recent hours, the market printed a run to #1,600.70, but it seems like a strong Resistance, drawing the Daily chart candles to within touching distance of two merging trend line Supports. Beyond here, Hourly 4 structure offers July’s opening level at #1,632.70 as my new short term Target. Weekly structure, as highlighted in my reports, crossed paths with a 1:1 correction, shaped from the August #2013 low last week. As is evident from the chart, Selling has so far been reasonably strong from #1,670.70. The Technicals on the Daily chart are still showing Bullish signs and I can spot with certainty that Gold is Bullish on Longer term. Weekly support – with the nearby Hourly 4 chart mentioned above – is an area where Sellers may be looking to get involved, but Selling Gold at the moment is dangerous, unless my Support breaks. Buyers might wait and see if a Hourly 4 Bullish candlestick configuration develops (Breaks Channel Up) before entering they Buy order. This helps recognize Buyers intent and provides traders with entry and risk levels to work with. I will carefully calculate Risk/Reward ratio and act accordingly. My pick is Hourly 4 #MA50 #1,632.70.