Keeping my Selling order / Gold under strong Selling pressure for FX:XAUUSD by goldenBear88
Technical analysis: Despite the configuration and from a Technical stand-point, Daily chart is showing that dip correction should be over or at least near exhaustion within Lower High’s, able to deliver another aggressive takedown with #1,833.80 Higher Low’s Upper zone as an optimal Target (remember that Gold always delivers #3 declines and then forms a Bottom (#3 Lower Low’s extensions cycle mentioned throughout my remarks many times)). However, #MA50 on Daily chart is coming from below, still preserved and keeping Medium-term Buying bias alive. As I can clearly spot, these are the most Volatile times on Gold since #2020 with the Volatility variable on #91.82% this Week lately, last Year the variable was on mere #72%. The Price-action didn’t took me by surprise, as Asian Stock markets in the past sessions withstood this firestorm, but the E.U. markets (which where the losers of the memorandum and possible renewed recession fears) ended in enormous losses. I cannot speculate how long this state of uncertainty will last for but for as long as it does, I will adjust my strategy adding strict Risk management. Technically, one should read the charts properly and current newly formed possible Bottom / correction is nothing more than Dead Cat bounce which is pointing on more serious losses on Gold (prolonged weakness). As for the correlations and when Gold follows more closely one asset compared to another, this is just up to the analyst to determine. #1,860.80 sequence is quiet straightforward, where break of mentioned level has #1,852.80 psychological benchmark and #1,833.80 Support in extension as an viable Targets for Sellers to pursue. Gold didn’t appeared as underpriced since by my estimations, these are fair Technical values on Gold as this could be the first Month lately to close in losses. Downwards dynamics should start pressuring smaller charts and current area should be Traded / Sold between #1,870.80 – #1,880.80 (what I successfully did).
My position: I am holding my Selling order engaged throughout yesterday’s session (#1,875.80 as an entry point) with #1,833.80 as my optimal Target. In regards of the above, I am comfortably holding my Selling order. Every reversal attempt on Gold should remain short-lived.
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