Gold is ready for aggressive takedown / Sell active

Aug 30, 2022

Gold's general commentary: Very important session today (crossroads for the Short-term) as the Price-action should testing the #1,721.80 Support line for the #2nd time July #27. Gold hasn't closed a session above the #MA50 since August #26 and since #MA50 is Resisting the Price-action strongly, I expect an aggressive rally regarding the Medium-term towards the #1,700.80 psychological mark. Daily chart turned Bearish #15 sessions ago as I still see many similarities between that and the late July - early August #2021. It is worth noting at this point that it is the strong DX that is keeping Gold Lower as the DX is on a Medium-term Bullish reversal pattern. The slightest bearishness on the DX (which is testing its #109.100 Resistance should have a huge Bearish effect on Gold (in a way of heavy Selling pressure).


Technical analysis: Ahead of an emerging Death Cross on the Hourly 4 chart’s timeframe, Price-action is still not near the Bottom of the fractal and is still not reversing. As a result, I doubt the Price-action will finish the Trading week above #1,752.80 mark at this point, on a week where only the Building Permits and the Existing Homes Sales will be reported. A break above the #1,752.80 mark will have Bullish note towards #1,762.80, while below #1,730.80 Support, #1,700.80 will be on Sellers aim. I am confident that Gold will test #1,700.80 mark within #4 sessions horizon.


My position: I have engaged previous Selling position throughout yesterday's session and closed it on breakeven due Gap fills both on DX and Gold's Hourly 4 chart which made me not so confident regarding my order. However, as Traders are aware that I have been announcing #1,700.80 psychological mark test all the way since #1,800's, current sequence is still within my Trading model and I have engaged new Selling order near yesterday's session market closing. My entry point is #1,740.80, and my first Target is #1,721.80 Support, ahead of #1,700.80 mark. I am confident that Gold is Targeting #1,700.80 mark first then #1,678.80 Lower Low's extension, and path towards the barrier will be cleared once DX picks a side and alter mixed values. I am looking at #1,678.80 test possibility within #8 sessions.