Stock Market

Sell order activated / Gold remains under heavy pressure for FX:XAUUSD by goldenBear88

Gold’s general commentary: Despite Price-action Trading within an Hourly 4 chart’s Bullish Flag (pattern which is spotted multiple times on H4 chart lately), Gold is purely responding to the Fundamentals of the DX that is on High speculation mode ahead of the Q4 -Q1 GDP report (and U.S. debt skyrocketing). The only important reports left were Fed minutes, U.S. GDP and today’s session Inflation PCE.

Technical analysis: The DX did approach the #101.900 Resistance zone but Gold remained more or less stationary on Hourly 4 chart, highlighting the strong Selling pressure it is under. Besides strong Selling Intra-day impulse, Gold found Buyers near #1,920’s many times which represents Higher High’s Lower zone where Institutional capital flew from Gold and Investors offloaded their Short-term Selling orders (as I announced many times), pushing Price-action once again towards #1,920’s, former multi-Month Resistance level . Constant Hourly 4 chart’s Bullish spikes and Bullish move in general has no further room to go (according to my Technicals), so I don’t expect this consolidation to continue for more than #2-session horizon. My focus shifts to the PCE numbers and Fed repurchase agreement negotiations which are in final phase, aswell to the ties of Gold with Bond Yields and DX , where Gold is attempting to find a equilibrium between the two. This indeed is not a good sign for those who want to Buy this market (most of Traders will) as the more prominent area for Buyers to arise is likely around Hourly 4 chart’s #1,900.80 – #1,905.80 which is crucial re-Buy zone to rely on, having seen how well it held Price-action Lower or Higher in the past few weeks (current fractal ). This is a cautious market at the moment. Once Gold stabilizes, #1,927.80 – #1,932.80 can be used as an re-Sell area towards #1,910’s and if invalidated, #1,900.80 psychological benchmark (#1,900’s became new #1,700’s since Price-action was strolling around #1,700’s for couple of Months). However if #1,942.80 breaks on the other side and market closes above, Buyers will expect a contact with #1,952.80 (former Bullish pressure point). In light of the analysis above, keeping my Stop-loss wide on the next order may be the better path to take at the moment and sustain current Stop-loss hunts by Institutional Traders. If market closes below #1,927.80, Rising Wedge is invalidated to the downside as I can comfortably pursue #1,900.80 psychological benchmark with my Selling orders.

My position: Even though my usual Trading practice is to remain on sidelines throughout Friday’s session, I have engaged my Selling order with #1,928.80 as my entry point. My optimal Target remains #1,900.80 psychological benchmark as Buyer’s intent remains weakened. Market closing below #1,927.80 negates Buying bias and is adding credence to Gold’s Sellers.

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