Engaging my Selling order / #1,766.80 on the cards

2022年1月31日Gold's general commentary: As expected relative to last week's Price-action, the Hourly 4 chart’s #1,813.80 - #1,815.80 has worked as an strong Resistance zone and as mentioned previously rejected the Price-action back below the #1,800.80 psychological barrier which triggered my deep Selling order towards the session’s Higher Low’s. This is certainly a Bearish sign and since the U.S. macro reports reported suitable readings for Selling in succession, the DX picked up the Buying sentiment (which is again Bearish for Gold, showcasing Bearish pressure which is under). If it wasn't for the parallel pressure on the Bond Yields this week, I estimate Gold would have been near #1,766.80 Medium-term Support by now at least. Gold is Trading within my projected values and #1,781.80 is my next point of interest with #1,766.80 as an final extension on this Bearish leg. Keep in mind that my approach is Swing Trading (Long-term positions) within quarterly cycles and my goal is identifying the correct trend for a longer period of time, even if it lags to a small extent.


Technical analysis: Gold broke the last barrier of #1,788.80 on Spot prices, confirming the downside wave towards the multi-Month Weekly Support zone of #1,768.80 - #1,766.80. Daily chart is still Bearish biased, aswell based on the Weekly chart’s and Daily chart’s peak rejections, it is indicating by my Technical analysis, that Buying is strongly limited (Technically), and under current market conditions Gold is a Sell option (it is visible that Gold is heavily pressured by disappointing announcements readings and DX above Yearly High’s). The DX (# -0.27%), is on critical crossroads and should stay above #97.00 Support and is likely to have strong effect on Gold. Daily chart has taken a pause from the Ascending Channel course to form a #5 - #8 sessions ABCD pattern as the absence of economic news should cause some sideways action. Apart from that, last week's #1,795.80 - #1,801.80 High’s can be distinguished as an Resistance zone, demonstrating that the trend remains fully Bearish on the Short-term. With the attention still on the Trade tensity, Investors should seek for direction on this week’s Fundamental events, being a leading indicator to Inflation, directly affecting Gold. As Gold still tries to achieve an equilibrium with DX, as Gold still loses value more than DX does, indicating an elemental Bearish trend. Global capital is on a Buying frenzy state as Gold negatively beat estimates as well as the unemployment rate. With such pace capital will not fly to Gold anymore, which may trigger full oscillation towards #1,727.80 Lower Low’s extension.


My position: As I engaged my Selling order throughout Friday's session (#1,788.80 entry point) and moved the Stop-loss instantly on breakeven as Gold dipped more than #5 points below the entry / Price-action broken the #1,788.80 variance firmly and got rejected near #1,781.80 Support, reversed towards (and triggered) my breakeven Stop-loss and made me remain on sidelines for the session on a practical risk-free Trade I had. As my current Trading results are excellent, I allowed myself to take the risk and engage earlier (without Selling confirmation) my Selling order with #1,792.80 as an entry point, Targeting #1,766.80 Medium-term Support. As DX is on red candles and Bond Yields Trading near the Support zone, it is possible to have Bullish spikes, as I will approach with extreme care. If Gold breaks #1,795.80 Resistance, #1,802.80 is the final line of the defense for Sellers.