Gold is pricing a Top and ready to turn downside

6 Okt 2022

Gold's general commentary: The Price-action hit the Daily chart’s Resistance belt and got rejected as expected near #1,727.80 - #1,734.80 and is currently pulling back on the last two candles. This may only be temporary as it happened on August #6 however caution is required as the Weekly catalysts are still about to be reported. Technically the newly formed Descending Channel on Hourly 4 chart still has a Lower High’s to give around #1,700.80 mark before I re-evaluate the trend regarding the Short-term. As I mentioned throughout my remarks, Gold is Neutral now, turning Bearish if market closes the Daily candle in losses (below #1,700.80 mark), Bullish if market closes above the #1,727.80 configuration. Buying sequence is limited or near exhaustion, however Gold not only succeeded in breaking the Resistance (#1,700.80) and almost tested second Resistance belt, but was also comfortably Trading above it. Needless to mention on the other side, Descending Channel is intact due to the sharp Intra-day recovery on DX and uncertainty on all market classes. This outweighs the decline on Bond Yields market.


My position: Gold remains Neutral regarding Hourly 4 chart's values and will continue do remain Neutral until one of the benchmarks break. There is no confirmation of both uptrend or downtrend continuation, however I will continue utilizing my re-Sell strategy either from new Resistance belt rejection (similar to yesterday's session Top's) or full candle closing below #1,700.80 mark (confirming Bearish reversal). Congratulations if you Sold near Resistance zone throughout yesterday's session, aswell on early E.U. session today.