Sell order activated / Gold remains under heavy pressure

27 thg 10, 2022

Technical analysis: Since #1,662.80 Resistance broke, the former Bearish pattern got invalidated and as the Hourly 4 chart’s #1.652.80 psychological mark continues to act as a Support. Gold is Naturally testing the #1-Month Resistance zone of #1,662.80 - #1,672.80. This is rather straightforward on a Short-term basis. If a Daily chart’s candle closes above the #1,672.80, Bullish Short-term trend should continue as High as roughly #1,688.80 - #1,692.80 where the psychological mark of #1,700.80 will be waiting above to pose as an Medium-term Resistance zone. In order to invalidate current configuration (in case always if #1,662.80 holds) Gold may decline towards Hourly 4 chart’s #1,652.80 mark (or below) as it happened both on November #9 and November #23. It is important to note that Technically, variance is showing strong Selling signals and Fundamentally it appears that currently Gold is typically correlated with DX (whose Low levels should have had Gold much Higher) but with the act that following the Fed’s sentiment and Rate hikes (which Naturally should be Bearish for Gold), Long-term Investors that have Sold Months back are closing their positions in an attempt to limit the upside risks. Current Gold’s upswing is nothing more than a reaction to DX Trading widely below the Support.


My position: Even though I am Trading before the news, I am confident that Medium-term sentiment remains Bearish, where I engaged my Selling order with #1,664.80 representing my entry point. Optimal Target for the sequence remains #1,642.80 Support extension. Keep in mind that Gold should Trade significantly Higher due constant Low's on DX, but Gold still gains less value than DX loses, indicating elemental Volatile trend and that market speculators are preventing full scale oscillation towards #1,700.80 psychological mark. Gold should remain under heavy Selling pressure.