Gold on Hourly 4 chart's Bearish setting / Buying very limited
Gold's general commentary: The former Resistance of #1,842.80 has turned into a Support in a symmetrical manner as it has done throughout January, as Gold is eyeing even Lower levels. The Resistance zone is seen Trading at #1,862.80 - #1,867.80 on Hourly 4 chart but looking at the wider timeframe of Daily chart’s Ascending Channel and the Higher Low’s former trendline, I am expecting an Intra-day correction towards #1,848.80 - #1,852.80 once again if #1,842.80 pressure point preserves the uptrend and rejects every Selling attempt. Technically, Gold should see a similar pullback to April #15 - #21 towards #1,778.80 point again and #1,747.80 in extension below #1,752.80 psychological benchmark (Medium to Long-term decline). However, no changes on the Daily perspective as the Price-action remains Neutral above the Hourly 4 chart’s Support for the session and below the Short-term Resistance, as DX paused the downtrend. #1,862.80 - #1,868.80 should be ultimate Top since Gold already negated #60% of losses delivered on current Selling sequence, as Gold currently isolated within #2 Short-term benchmarks (typical Support and Resistance pricing). My aim is roughly #1,842.80 - #1,848.80 Support zone which can be correlated to the Technical Higher Low’s Upper zone within (will be then) invalidated Ascending Channel. In regards of my previous commentaries, current configuration needs to be reviewed on with a Selling entry near Medium-term Selling accumulation zone which should be vital for #1 - #2 week horizon. If #1,842.80 Support gets invalidated and market closes below, development negates Short-term Bullish bias.
Technical analysis: Gold has hit the #1,845.80, February #15 Low, which is currently representing middle of strong Support zone. The Daily chart #MA50 is priced near Lower High’s Lower zone (#1,869.80) and since April #22, it has always provided the Long-term accumulation point for Buyers (slight exceptions December #22, #2021 and January #11, #2022). Regardless, I do not believe it would be the case at the moment however I give less probabilities to the upside, while #1,800.80 Lower Low’s Upper sone extension test seems very likely. Full scale recovery observed in U.S. Bond Yields (#2-Year High’s) surely improved market sentiment, subsequently weighing on traditional reaction of the market using Gold as a safe-haven. Up (# +9.45%) on Monthly chart (#1M) in the shape of a near-full-bodied Daily Bullish candle (Bond Yields), Gold’s Hourly 4 chart is determined to challenge #1,842.80 - #1,848.80 Support zone, however #1,842.80 is showcasing strong durability. Another point worth taking on board here is the Williams% indicator seen testing Overbought waters on smaller charts (many similarities with February #2014 fractal when market was Overbought), and with DX on spiral downtrend (forming Double Bottom) and Bond Yields Trading on #2-Year High’s, current Fundamental and Technical developments seem not to be enough reason for Gold to test Lower values. Note aswell that on the Daily chart, Support zone is also visible and if broken will surely point out to a Lower levels such as #1,823.80 and #1,800.80 psychological benchmark. Side Swings that Traders are witnessing right now are ideal for Scalpers but can also liquidate Traders who don't analyze the charts correctly, respecting Technical rules. I advised earlier to approach the market with extra caution. With all current developments taken into consideration, Gold should already Trade below #1,842.80 Support (testing even #1,833.80 or below would be fair estimate). It wasn't difficult to explain why yesterday’s session Bullish spike occurred, while both correlating assets should work in Seller’s favor (once DX engages relief rally). Last #4 out of #4 times DX engaged the aggressive Intra-day decline, Gold followed with #20 + point Buying spree, while yesterday's session decline (followed by strength on Yields) was ignored by Gold to a great extent.
My position: Current market sentiment offers me no Short-term patterns to Trade by, so I will await patiently and look to re-Sell Gold near #1,842.80 Support line. It is important to note that Gold might be on a verge of renewed Buyers presence if Medium-term Resistance zone gets invalidated and market closes the session above it. I do not expect hawkish stance from Fed chair as market sentiment is showing signs of indecision.
Technical analysis: Gold has hit the #1,845.80, February #15 Low, which is currently representing middle of strong Support zone. The Daily chart #MA50 is priced near Lower High’s Lower zone (#1,869.80) and since April #22, it has always provided the Long-term accumulation point for Buyers (slight exceptions December #22, #2021 and January #11, #2022). Regardless, I do not believe it would be the case at the moment however I give less probabilities to the upside, while #1,800.80 Lower Low’s Upper sone extension test seems very likely. Full scale recovery observed in U.S. Bond Yields (#2-Year High’s) surely improved market sentiment, subsequently weighing on traditional reaction of the market using Gold as a safe-haven. Up (# +9.45%) on Monthly chart (#1M) in the shape of a near-full-bodied Daily Bullish candle (Bond Yields), Gold’s Hourly 4 chart is determined to challenge #1,842.80 - #1,848.80 Support zone, however #1,842.80 is showcasing strong durability. Another point worth taking on board here is the Williams% indicator seen testing Overbought waters on smaller charts (many similarities with February #2014 fractal when market was Overbought), and with DX on spiral downtrend (forming Double Bottom) and Bond Yields Trading on #2-Year High’s, current Fundamental and Technical developments seem not to be enough reason for Gold to test Lower values. Note aswell that on the Daily chart, Support zone is also visible and if broken will surely point out to a Lower levels such as #1,823.80 and #1,800.80 psychological benchmark. Side Swings that Traders are witnessing right now are ideal for Scalpers but can also liquidate Traders who don't analyze the charts correctly, respecting Technical rules. I advised earlier to approach the market with extra caution. With all current developments taken into consideration, Gold should already Trade below #1,842.80 Support (testing even #1,833.80 or below would be fair estimate). It wasn't difficult to explain why yesterday’s session Bullish spike occurred, while both correlating assets should work in Seller’s favor (once DX engages relief rally). Last #4 out of #4 times DX engaged the aggressive Intra-day decline, Gold followed with #20 + point Buying spree, while yesterday's session decline (followed by strength on Yields) was ignored by Gold to a great extent.
My position: Current market sentiment offers me no Short-term patterns to Trade by, so I will await patiently and look to re-Sell Gold near #1,842.80 Support line. It is important to note that Gold might be on a verge of renewed Buyers presence if Medium-term Resistance zone gets invalidated and market closes the session above it. I do not expect hawkish stance from Fed chair as market sentiment is showing signs of indecision.
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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.
