Buy order activated / Gold maintains Buying momentum

30 may 2022

Gold's general commentary: Despite the strong Bearish candle sequence on DX, Gold remains Neutral and above my Support for the day as the U.S. session is approaching and tensions resurface. However, #1,862.80 is new / old Resistance zone made by the Hourly 4 chart’s candlestick configuration. Gold is pulling back again after it failed to break above it’s Lower High’s Upper zone on the Hourly 4 chart. Still I haven’t got confirmation for Short-term Selling opportunity and current sentiment is still not worth entering without tight Risk management. Today’s session Wall Street opening Bell can have Bearish impact also on DX, hence Bullish for Gold. My Neutral bias is unchanged as I will treat Selling spikes as an oscillation from Overbought to Neutral (Williams%), which created new space for aggressive Bearish takedown, but only when Gold prices in Lower High's Upper zone. Gold is extending the sideways action, following the continuation of the former Hourly 1chart’s Ascending Channel, as Bond Yields and DX losing for the #2nd straight session (DX taking strong hits), current environment is Gold friendly (should spike upwards) but not on my surprise, Gold was losing with every candle against the recovery trend and isn’t near local High’s where it should be.


Technical analysis: See how Gold's strong Selling level of the #1,852.80 - #1,848.80 zone is far from fair symmetrical manner with disastrous side Swings on Bond Yields and DX as my strongest correlation so far, but currently both assets are on decline, fractal that last happened on September #2012 Year, messenger of strong unprecedented Volatility. I am Highly sceptical and having strong reservations of current Gold’s Short-term correction downwards (as Gold missed all chances for Selling sequence last week), as I don’t think that Sellers will see continuation of it, at least for today's session. On the other side, there is no factor to push Gold Higher again, but as long as DX without a recovery, Price-action will push for the Resistance test and possible break. As long as Gold is Trading on side swings and consolidation rallies, I will not position myself on Medium-term.


My position: As Gold delivered Intra-day Buying opportunity, I took my chances (after being sidelined for few sessions) and engaged Buying order with #1,860.80 as an entry point. Optimal Target for such order is #1,882.80 extension.