As long as Fundamental candles are arriving, Gold is Buy option

28 févr. 2022

Gold's general commentary: Buyers still haven’t missed their estimate as Gold aggressively invalidated #1,900.80 barrier (posing as an hard Resistance), due geo-political tensions as a strong catalyst. Gold was once more used as a safe-haven and soared (was about to engage Buying rally) due to the Supply-Demand mechanism. DX and Gold are correlated again (able to convert into primary correlating asset), their charts are again on Positive - Negative match which is elemental sign or correlation. This suggests that DX tested its Daily chart’s Resistance zone, and Gold may touch #1890.80 extension soon before rebounding (I have main screen dedicated to this relationship). This doesn't affect my dip Buying and High’s Selling strategy on Gold and regarding Hourly 1 chart - was on a clear Ascending Channel which by all means, will sustain according to all accounts by beginning of the U.S. session (it is a reversal pattern most of the times) if #1,890.80 second Support rejects current Price-action and Gold closes the Bullish Gap fill there. Weekly chart was Trading near strong Resistance which was aggressively corrected Intra-day so I will not make a strategy shift and will trust my Buying model as long as invasion lasts. I have to be excessively careful as Gold is Trading under strong Volatility.


Technical and Fundamental analysis: Another strong Bullish Daily chart candle (# +0.73% so far) with the Gap fill about to be closed on Hourly 4 chart's Bearish spike (due Bullish Gap fill on DX) testing the Support below #1,900.80 barrier before an aggressive uptrend towards my Buying entry point (#1,914.80 - #1,917.80). DX is Trading on the #2nd straight Bullish Daily chart's candle, applying heavy Bearish pressure on Gold (but Gold still neutralizing Overbought levels) as the most important Bearish factor at the moment is the relief on global geo-politics (both sides involved into conflict escalation are about to meet and discuss the term) which cause more risky assets to gain and Gold to lose. This shows how overpriced Gold was due to these Fundamental tensions during this most recent Bull leg. Gold is still being kept on High levels despite DX’s uptrend action (Gold should be filling the Gap near #1,890.80 already). The slightest pullback on DX should push Gold inside the Resistance cluster, my projected Buying zone (strongly rejecting any upside attempts for #2 straight sessions now) where I will be waiting to Buy the market on a Short-term basis (#1,914.80 and above). Keep in mind that only a break above #1,914.80 constitutes a Bullish continuation sign for the Short-term. Technicals are calling for a Lower High's pull back towards #1,882.80 once #1,890.80 is tested and invalidated, but Selling on such Fundamentally Bullish bias is not advised. Congratulations if you Bought Gold on late Friday's U.S. session as market opening were in strong Bullish fashion (aggressive Bullish Gap fill) which is about to be filled / closed.


My position: As Gold is once again headed back into Trading within Neutral Rectangle, current fractal offers me no High accuracy pattern, so I will await #1,914.80 cluster break to engage my Buying order towards #1,935.80 extension (of course with attention shift towards DX chart, where Bullish Gap fill which is progressively adding Selling pressure on Gold has to be closed). All below #1,914.80 is Volatility which is best to be avoided. I still do not consider Selling Gold on Medium-term, where opportunity would present itself to do so once Fundamental dust settles.