Gold indecisive and hunting for Stop-losses

18 Okt 2022

Technical analysis: The Price-action is currently Trading just below the Hourly 4 chart’s #1,670.80 Resistance fractal gaining momentum as the DX is still on aggressive downtrend which by all accounts, haven’t got intention to stop. Gold is approaching again the Higher Low’s Upper zone trendline, above the Daily chart’s Neutral Rectangle, slightly below the #1,670.80 - #1.680.80 zone which represents Buying accumulation point since late September. It would be best for Short-term Traders though to wait for the Selling confirmation though, however since I am already Trading, current Selling order I am operating with is the most optimal Trade to take. Absence of High impact news will most likely push Gold back to Lower levels and as discussed, unless #1,670.80 or #1,682.80 breaks, in such case Price-action will be calling for #1,692.80 local High’s extension. Technically this is a duel between the Short-term Bullish trend of the Hourly 4 chart’s Oversold oscillation and the critically Bearish Daily and Weekly charts (both indicating that Gold’s Medium and Long-term trends remain fully Bearish). It is the DX (# -1.18%) which was taking strong hits and represents sole reason why Gold isn’t under heavy Selling pressure currently. Constant DX spikes on Intra-day basis are adding instability on Gold’s Short-term.


Fundamental analysis: It is the DX which is main driver for the past #60-session horizon, where Gold mimics the movements and aggressive side Swings are the product of it. It is important to note that U.S. session Top’s were made exactly on the Higher Low's Upper zone trendline of the Daily chart’s Buying accumulation zone, which shouldn’t allow any more room for uptrend from this point (#1,670.80 or above). If however the Price-action invalidate last week’s Low’s, Buying formation is invalidated regarding both Short and Medium-term as the next pullback should represent a Selling opportunity, since DX is still Trading near Monthly Low's. Whole sequence depends on how DX fares throughout the session (however, Gold was subsequently falling along with DX, indicating elemental Volatile trend on Gold). Technically a break above #1,670.80 is a Short-term Buying opportunity towards #1,682.80 (however, Buying is strongly limited).


My position: As Gold is slowly picking a side and Trading within a Triangle, my Short-term Stop-loss of #11 points was triggered throughout yesterday's session (from the #1,655.80 entry point) and left me without any kind of orders for the moment. Due DX Trading near Monthly Support zone and Price-action still indecisive, I might remain on sidelines for the session. However, as soon as DX corrects yesterday's session losses and fills Bullish Gap, #1,633.80 structure will be firstly tested then #1,600.80 mark in extension. I will be ready to pursue those Targets once opportunity arises. Shorting is excellent way (mixed with patience) which delivers spectacular Trading results.