Fundamental analysis: Evident sideways Price-action extension on the Hourly 4 chart as the consolidation patterns providing the safest framework for dip Buying strategy. As Gold was critically Overbought, it was totally Natural to expect Sellers to arise and extend the Hourly 4 chart correction towards my Support and below #1,900.80 psychological barrier. The Hourly 4 Resistance has been rejected twice already which gives an updated Targets with a potential extension towards #1,927.80 if #1,917.80 breaks. Only if #1,917.80 breaks, I will contemplate Buying the market as at the moment / Hourly 1 configuration points that it Buying is strongly limited. I don’t expect today’s session reports to be relevant, as I await #1,850.70 Selling extension (Selling on every High) once Bond Yields engage more serious recovery. Gold broke the #1,905.80 Hourly 1 chart Support with ease, which has now turned into a Short-term Resistance as the first test on the previous Hourly 4 candle was unsuccessful. The next barrier on my focus is the #1,892.80 level, which I expect to break with relative ease as the DX (# +0.46) just formed the very formation and if broken, next stop should be #1,871.80 configuration, and break of should eye #1,840.80 (February #10 variance). As a result I believe the current level of #1,900.80 is a solid new Sell order opportunity, as everything depends on today’s session market closing. If my pattern is postponed and Gold breaks the #1,892.80 Support then Buy back the decline, I then have to wait for potential contact with the #1,871.80 Support, to Sell again on Medium-term.
Technical analysis: Gold has finally entered the #1,900.80 – #1,910.80 Zone which has seasonally been the strongest Selling accumulation point since September #2020. is Naturally stabilized as I shift my focus on Weekly and Monthly chart, both of which are calling for a long term reversal. The Fed loan rate climate is the main driver behind this aggressive rise and should be Sold immediately when #1,871.80 Main Support gets invalidated (thus Bond Yields engage the Weekly chart (#1W) full scale reversal, which can be identified as an trend switch on Gold ). There is always an outside factor that drives the Price-action to the Resistance seasonally (reversal on Yields and DX ) but all are Sold there. It is possible to have a #10 session period Trading within #1,920.80 – #1,880.80 before the Price-action breaks downwards though based on the #2020 / #2021 cycle. If Gold does not recover the #1,917.80 Higher High Resistance and restores Short-term trend within #2 sessions, I can Sell with certainty on Medium-term. New outlook on Gold will come as no Technical surprise since other assets should Trade favorably for Gold’s decline. 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.
My position: I engaged my Selling order on #1,900.80 break, calling for #1,871.80 extension. I will move my Stop-loss every #3 points as weekend break is near as I don’t want to remain with a position over the weekend and endanger my #6 Profits row and #1 Stop-loss hit.