Gold continues to shine as expected, correction may be ahead

Gold's general commentary: Gold is displaying extreme durability (both Technically and Fundamentally) as despite the Bearish pressure provided by the Technical necessity for the Higher Low’s extension, the parallel decline of DX and uptrend Bond Yields, Gold (Spot prices) was testing #1,866.80 Resistance throughout yesterday’s session, extending the range to #1,882.80 (Medium-term Resistance which is now broken). In addition to that, yesterday’s session Low bounced exactly on the pressure point which is a sign that Bearish reversal might not be far away, but will be surely postponed as this week’s #1,843.80 - #1,848.80 Support cluster resulted as an #10 point recovery Intra-day and current Buying continuation is result of it. Daily chart remains an healthy Ascending Channel but at the same time, Weekly chart is on Negative gradient so only a new Higher High Upper extension test (#1,917.80) can restore the Short-term Bullish sentiment and postpone the correction of current gains.


Technical analysis: This week’s priced in Resistance zone (#1,866.80 - #1,869.80) could reject the Price-action but on Top of it - Gold risen generally since throughout all Trading week (#8-session consecutive Buying run), DX is Selling every High and Bond Yields are still on very positive gradient and still unable to find a Resistance which is a mix keeping Gold on recent High’s. I cannot speculate how many sessions this uncertainty will last but I can confirm that DX cannot stay on Annual Low’s for more longer and even mini recovery will kickstart and practice Selling pressure on Gold. It was Highly dangerous to position myself ahead of FOMC conference, where surprise there could invalidate any kind of order, that's why I remained on sidelines and engaged after #1,866.80 was invalidated.


Fundamental analysis and my Position: I am eager to engage my Medium-term Selling order to pursue #1,852.80 and #1,800.80 psychological barrier in extension and will be patiently contemplating to do so, but engaging such position is still a gamble since: #1) There is no point for Selling the Fundamental aggressive upswing (Russia - Ukraine tension, hence, reported by some accounts that shots were fired on Ukrainian side), #2) It is difficult to foresee Ultimate Tops and where will Gold form the peak and correct the gains from. There is also no point in opening Short-term Buying order aswell since Price-action can turn downwards any moment and invalidate my model. Remember, Fundamentally driven rises are most Volatile times as the Price-action is Trading on big spreads so finding myself on wrong end can be vulnerable for my capital. At the moment Gold is favoured heavily but all Technical developments are calling for Lower levels, and I can start Selling the market once the red Daily candle appears and Yields continue Trading above the Resistance. As I am more than satisfied with my yesterday's session results (Buying the #1,866.80 break) and my results in general for current cycle (#15 Profits run and #2 Stop-loss hits), I will not engage any more Buying orders and will contemplate Selling Gold on Medium-term as Price-action is Trading High enough to start thinking about Profits on the way downwards. With that being said, only #1,917.80 break can postpone the correction downwards. Enjoy the Asian session Profits!