Gold is Bearish on Short and Medium-term / #16 Profits row

22 сент. 2020 г.

After booking #16 Profits in a row throughout August-September cycle and only #2 Stop-loss hits (which are not more than #11$ both), I am looking for #17th. One of the greatest proportion Yearly declines was formed throughout yesterday’s session on Gold, as the Price-action almost hit the Bottom of my #1,880.80 - #1,890.80 zone range and break of #1,882.80 could be calling for #1,864.80 extension. As new Monetary stimulus seems far away which usually sets Gold in a rally (Congress still without an agreement), Gold's Bullish bias and eminent uptrend is out of the calculation, as Gold is without signs of a recovery. Bearish leg has (so far) been rejected as that was the Lower Low of the Hourly 4 Channel Down. Technically Gold (Xau-Usd as always on my commentary) bought back above #1,900.80 Support and pullback to the #1,927.80 could be on the cards, which was the ground for sideways Trading within the Rectangle since September #2. Statistically, when Gold pierce #40$ (or more) on the Selling side/Selling sequence, rally is ahead. Expect a High Volatility ahead (#67.80 index) with Higher Low’s and Lower High’s. A break above #1,917.80 should give way to a quick spike to #1,927.80, but chances for that are less than #10% on today’s market closing. Gold is still for sure a Sell option, as since breaking Supports has largely negated the positive bias of the previous #5 sessions, making a Channel Down on Hourly 4 chart practically cancelling out the Higher High possibility. Gold's greatest “success” this week was posting it's first Weekly candle with losses since two straight on heavy gains. The Price-action will be next looking to fill the first contact point, #1,894.80 Bearish, #1,917.80 Bullish. Corrective Trading (after Volatility) will come as no Technical surprise, and consolidation around #1,900's - as Equity holders digest the news and evaluate their strategy. Stock markets clearly accumulated all the panic capital from Gold markets and is bound to give some back. As discussed throughout September on my reports, I won't be surprised if I see Gold testing the #1,750.80 by end of October. Gold is surely a Sell option and if Price-action breaks the semi-Support (#1,894.80), I won't hesitate to engage strong set of Sell orders calling for #1,882.80 Lower Low. However, breaking of #MA50 on Daily chart turns Gold from Bearish to Bullish on Short-term, keep that as your strong Resistance.