Gold on relief rally extension / Sell order engaged

10월 22일

Technical analysis: As I announced possible relief rally extension on Gold, Price-action has recovered almost all of yesterday's session losses on the E.U. session opening as Gold was taking big Daily chart's candle hit. However the rise is still not proportional as DX and global futures are still on Higher levels. This leads me to believe that on the Short-term, there is a stronger connection of Gold to DX, rather than Bond Yields, so I will keep an eye for pressure zones on DX. Technically the Daily chart was isolated within broken / recovered Ascending Channel on it’s Higher High’s, as Resistance has to break since last couple occasions it provided rejection twice (#2,738.80 - #2,742.80). I am expecting strong move to take place throughout this week. Despite the Bullish Fundamental outcome on announcements last week, Gold continues to Trade near the #2-Week High’s. This indicates that last week's aggressive Buy-off on DX was largely a pre-pricing of those Fed Rate numbers. What's obvious, as the current week will come to a close, is that the consolidation since Friday’s session is just below the Daily chart’s Resistance zone which lifts the probabilities for an aggressive Selling sequence ahead, especially as Weekly chart (#1W) remains marginally Bearish. Interestingly, the Weekly candle is way above flat near (# +3.50%) differential.


My position: After focusing more on my #2,600.80 Medium-term Buying orders where both achieved #100+ points Profit Target range, I am now back focusing on Short-term where I have Sold Gold yesterday (#2,736.80 - #2,720.80) and Bought from (#2,727.80 - #2,736.80) / both positions closed. I have engaged new Selling order with #2,736.80 entry point few moments ago / optimal Target remains #2,717.80 Support in extension.