Gold within Neutral Rectangle on Hourly 4 chart

Gold's general commentary: The Price-action is now near the #1,850.80 benchmark, gaining Selling momentum as Bond Yields are Trading on a Daily chart’s candle recovery, but once again ignored by Gold (which should be way below by now). Gold is dangerously approaching again the Higher High’s trendline of the Daily chart’s wide Ascending Channel, above the MA’s on Hourly 4 chart in deep Overbought waters, which could be a messenger of a steep Bearish correction. Seller’s efforts and commitment is once again left unrewarded. It would be best for Short-term Sellers to wait for area to be engulfed, as this is the crossroad for this Week, taking in consideration that one can never foresee until when Fundamentally driven rises (such as current one) will last. Lagging downside sequence comforted Buyers on it’s Intra-day basis, as Price-action was close to #2-Month Top (#7 consecutive sessions of gains). The Price-action has stopped the uptrend fractal near the Daily chart’s Ascending Channel’s Higher zone, as discussed on my latest commentary, with current mentioned configuration above representing strong #2-Month Resistance zone. As long as this holds, there are Higher probabilities to reach the Hourly 4 chart’s Higher High Lower zone again (which is right now priced at #1,822.80) on Spot prices but touch will be done lower depending on the aggression of the current variance. Technically, Gold should ease the Overbought levels, but on such Fundamental landscape, Swings on both sides are the new norm. After all, on the Daily timeframe, the pattern is an healthy Ascending Channel which just touched the Higher High trendline and has a limit just near the #1,870.80, my main point of interests (depending on the impulse of the wave started early last Week). Below the #1,850.80, Short-term Neutral pattern is invalidated and the Selling may be accelerated towards the Hourly 4 chart’s #1,822.80.


Technical analysis: Gold almost hit the #1,870.80 level and pulled back, not only due to #1,870.80 representing the Resistance (July #16 sequence extended High) but also due today’s parallel recovery on the Bond Yields (inverse correlation). I have a similar sequence lately. Wednesday’s U.S. session Daily chart’s candle tested the Higher High’s Upper extension for the first time since late July, but market closed below it, then yesterday's Daily chart candle even though it opened with a new High, again closed below the Daily chart’s Higher High’s (was then) extension, and today's session candle is comfortably Trading below it with it’s Low exactly on the #1,850.80. Current sequence resembles the standard Support pricing patterns. Daily chart is Neutral and almost near the Neutral Rectangle, so still a valid Sell entry exists only if #1,850.80 breaks. I formulate my Short-term approach based on the Hourly 1 chart where Price-action is Trading on pure Fundamental pressure, as I mentioned on November #9 where Buyers risen and Bought the Bottom, and as long as the Weekly chart’s Resistance zone is intact (even though it represents strong Resistance zone), the Medium-term trend remains Bearish with Short-term Target #1,822.80, while I expect aggressive decline once the Fundamental pressure eases.