Sell order activated / Gold remains under heavy pressure

2022年8月22日

Gold's general commentary: Flat E.U. opening with visible Selling pressure on Gold, as DX (my main correlating asset currently) Trading on gains and pierced Medium-term Resistance seen Trading at #107.55 - #107.65, caused by impressively great numbers on U.S. economical parameters (Initial Jobless Claims and partially Philadelphia Fed Manufacturing Index) secondly Bond Yields engaged relief rally and are currently Targeting #3.000 psychological barrier, thirdly, it is important to mention Usd-Jpy pair which is on steady uptrend and partly it's back to my correlation asset list. Currently, Gold is comfortably Trading below one of crucial Support level of #1,752.80 - #1,755.80 and by breaking it, attracted more Sellers and extend Gold’s takedown towards #1,727.80 sequence. There is strong #1,727.80 test probability once #1,744.80 surrenders and if market closes below #1,744.80 mark while DX broken the Hourly 4 chart's Resistance zone am expecting decline to be in continuation under these circumstances. Daily chart is pointing on a steady slide aswell, so Medium-term Buyers should take that into consideration before planning a move. Investors remain cautious and that's why Traders are witnessing Low Volume throughout today's session.


Technical analysis: As expected the fractal didn’t acted on Gold's favour and yesterday’s recovery attempt rebound got rejected near the previous Hourly 4 chart’s Lower High’s Upper zone and is most likely headed for a Daily chart’s Support zone (#1,752.80 and below on Spot prices) for the first time since July #27. Hourly 4 chart has fully regained Bearish status with #1,752.80 - #1,755.80 still acting as an strong Support belt - as this is most likely the Lower High’s Lower zone leg of the Hourly 4 chart’s Descending Channel. If symmetry from December #2 cycle applies (just on the other side), I am looking for a possible #1,700.80 psychological mark break and full oscillation towards Lower levels, many similarities with the former Quadruple Top formation, connecting with July #15, July #29, August #4 and current possible peak extension (cycle is pointing that Gold always delivers #4 Low’s after previous Triple Top rejection). Sequence matches perfectly the Daily chart’s #MA50 looking to provide the stiff Resistance from the above (#1,773.80 rejected the recovery on multiple occasions) which is the key of the trend for the next week / Month, as Gold is surely isolated within Bearish territory, and breaking of #1,752.80 fractal is making Gold shift from Neutral to Bearish on the Medium-term. Another fact to Support the downtrend, Gold is rejected on Top of the Ascending Channel that started on July #22 and Hourly 4 chart is still not at it’s Lowest Technically it has been since July’s fractal / Oversold on all major RSI. Keep an eye on the Bond Yields and DX configuration in order to accurately track the markets as Gold’s Short-term is under total Bearish domination. Gold is on undisputed Bearish trend as Investors are not after Low-risk assets (such as Gold) and Price-action is no looking to contact with #1,727.80 sequence, which is considerably Lower. Cycle of June #18, #2021 - August #9, #2021 is seemingly reproducing slowly as there is strong resemblance with my current model. Gold priced an Higher High’s local peak then engaged aggressive takedown, reversed and delivered final Lower Low’s extension of almost #150 points decline. I am confident that Gold may close the week below #1,700.80 psychological mark if today's market deliver the closing below #1,744.80.


My position: I have engaged my Selling order with #1,743.80 as an entry point, Targeting #1,727.80 first then #1,700.80 mark extension.