Fundamental analysis: The Hourly 1 chart’s Channel Up got rejected on it’s Lower High trendline (not counting the abnormal wick of April #29) on a wide fakeout, and is now in the process of pricing it’s real Higher Low. The sequence was quite straighforward. The Price-action made a valid breakout, smashed the Resistance, and as Buying was strongly limited due to Bond Yields on a miraculous recovery, Gold Sold back the Top and was Trading on fair Technical price. My plan is to wait for the #1,786.80 configuration break, and if broken, pursue #1,817.80 configuration within the current (will then be) session both Technically and Fundamentally equipped for an Short-term uptrend. On the other hand, I will Sell on spot if #1,769.80 breaks, calling for #1,750.80 test. Bond Yields broken the Weekly chart (#1W) Support and were below the lowest point in #3 Weeks, and only factor which is stalling the uptrend is DX (# +0.50). Be alerted that the markets (especially the DX and Bond Yields) are on High speculation mode ahead of the Fundamental events as Gold could Trade on strong index.
Technical analysis prior to yesterday’s session: Despite yesterda’s E.U. opening indecision, Gold is showing high durability as it remains on Lower High relative to Friday’s and Monday’s attempts to find the equilibrium between DX and Bond Yields. Despite the new High lately on DX , the continuous dip on Bond Yields and of course the parabolic downtrend – Gold still hasn’t made a new Higher High, making me believe that the underlying trend remains (Medium-term) but with Short-term gradient, as Price-action is Trading on local Lower High’s – but I doubt it will stay this way for long. Further argument for it is that the Weekly chart is defending the further both upside and downside movement as Gold should follow soon enough (any break below #1,797.80 is an full confirmation). My advice for Short-term Traders is to Buy Gold on tight stops whenever they see Daily candle on DX or Bond notes, keeping in mind that the market has to make needed correction, can’t only Trade in one direction. Gold almost broken the Resistance and engaged extension, but Yellen’s talks regarding shifting economy Fundamentally distorted Technical fair trend and almost broken the . Market sentiment is too dangerous to approach without break points and Risk management, but both way’s I am expecting #1,800.80 psychological barrier break within #2 sessions. Gold can’t keep ignoring Low’s on Bond Yields for much longer. However as long as Gold don’t break #1,797.80, I can’t confirm continuation, but as the DX is on Neutral candles again and Yields struggling to make comeback, my Buying outlook regarding Short-term is unchanged.
My position: I have successfully added Buying order throughout yesterday’s session #1,786.80 break, and moved my Stop-loss so I can comfortably monitor the rise, but on the Yellen’s talks aftermath, Gold engaged the #17 point decline which hit my breakeven Stop-loss, leaving me with minimum Profits (#2 consecutive Profits, calling for #3rd). However, as discussed above, I will approach with extreme care and breakout points: If #1,786.80, it can pave the way towards #1,797.80 Resistance where I will add more Buying orders if breaks, riding Buying wave already from #1,786.80 with my Buying orders. However on the other side, I will Sell on spot if #1,769.80 breaks, where I will pursue #1,750.80 with my Selling orders.