Gold is Targeting All Time High's peak (#2,075.80 and above)

9 มี.ค. 2022

Gold's general commentary: Important Gold related developments as DX is Trading below Neutral Rectangle on Weekly chart (#1W), rejected near the #99.20 Hourly 4 chart’s Resistance zone as expected, should cause Gold to soar even more on the aftermath, as an Hourly 4 chart’s Engulfing Bullish candle. The Higher High’s peak rejection on Bond Yields (# + 6.10%) was Technically call for an Intra-day decline on Gold (which may be used as an excellent Buying opportunity), but I believe that crossing the Support level on DX was the necessary Buying confirmation for Gold. I spotted connection of Gold aswell (# + 1.04%) to Usd-Jpy pair (# +0.41%) throughout the yesterday's session which leaves Usd-Jpy totally in Gold correlations assets list (positively correlated). For now, I see only Bullish developments on Hourly 4 chart’s Gold chart, which shifted Gold from Neutral to Bullish regarding Short-term, totally ignoring Overbought conditions.


Technical analysis: According to my formula, last #4 times Gold touched the Higher High’s Upper zone extension, resulted as an #37 point decline, fractal which is seemingly reproducing (which should be immediately Bough) is pricing in at the moment. It is Natural to expect a pullback, but as long as DX is not pressured by disappointing numbers I expect smooth diagonal correlating (DX - Gold) Trading fuelled by (Fundamental pressure) which will constantly impulse the DX, and add strong Buying pressure on Gold aswell. Strong Bid/Ask Volume usually reveals that strong movement session is ahead, and if Gold breaks the #2,022.80 again, could easily engage Buying sequence and even more aggressive test of ATH’s ultimate Resistance levels (and break of wide Double Bottom formation on Hourly 4 chart on the aftermath, pricing in steep correction), break of can extend the bigger proportion decline towards #1,588.80 (March #27, #2020 Year Bottom). Gold was on strong Buying Intra-day rally, almost testing former ATH’s level peak. Selling extension remains #2,000.80, as I doubt that Gold will pierce #2,100.80 psychological barrier this Year. Especially since Daily chart is critically Bearish once again, where serious correction may be pricing in ahead. I will treat #2,075.80 as an Ultimate Top and Medium-term re-Sell area, with the next Technical stop on already discussed #1,900.80 barrier, and break of it will arise Medium-term Sellers which may place their heavy Selling orders towards much deeper values. Regarding Medium-term, Gold is surely Bearish as the new multi-Month Low’s are on the cards, but on the other hand - I cannot rule out the strong correction (identical as on June #29) with #1,700.80 as an possible turning point and stabilization area on the Long-term.


Fundamental analysis: Bond Yields are still consolidating instead of rising on hopes of this better macro-economic outlook. In essence the one works as counter to the other, hence Gold stays Bearish still near the Low's (even below) of the Bollinger Bands, visible on Daily chart configuration. This gives me the impression that Gold is more tied to the DX index movements at the moment than any other correlating asset, so I will Trade accordingly and take it into consideration. The slightest Bearish reversal on DX should apply Buying pressure on Gold (fractal confirmed on yesterday's session Price-action).


My position: Gold corrected all gains Intra-day and is now approaching #2,000.80 psychological barrier. This is my Technical maximum for Intra-day correction, and now I am expecting Buyers to arise subsequently and push the Price-action upwards. If #2,013.80 breaks, I will Buy Gold on spot towards #2,048.80 Buying extension.