#1,678.80 and #1,588.80 on the cards / #14 Profits row for FX:XAUUSD by goldenBear88

Gold’s general commentary: Excellent Selling sequence on Gold as Price-action peaked and was Sold early on as I mentioned throughout my commentary, which was the ultimate Top Target in the event of a Selling breakout (below #1,778.80 configuration). Personally I gave more chances to the Bear breakout as (on the other side) this is why I have Support levels for, to provide exact signals and Sell the market when they break. I have to zoom out to the Daily chart to better assess the market situation where the RSI is near the November #6 High levels, with the Highest level before that being the August #7 (#90.53) High, which is giving confidence to Sellers, showing that there is still much space for the downtrend. So it appears that the Daily chart’s pressure point of #1,748.80, which has been the Long-term Selling accumulation level – in this case will be a Medium-term breakout call and shift Gold from Neutral to Bearish on the Short-term. In such situations, the Daily pressure point (typical Selling variance) when broken, engages the minimum #140 point Price-action fractal , as I expect #1,678.80 if #1,753.80 gets invalidated on Daily chart , and Gold continues Trading comfortably below it. I am confident that Gold will break the #1,700.80 psychological barrier with ease and continue Trading on Lower levels within less than #10 sessions.

Technical analysis: No surprises on E.U. session opening as Price-action didn’t delivered any significant move further (classic consolidation) and despite the stagnation on Bond Yields and DX on modest losses, Gold has managed to defend the Support throughout the session and enter the #1,760.80 – #1,768.80 Hourly 4 Resistance zone . This is the Bearish extension of the Lower High sequence within the Daily chart’s newly formed Channel Down. The Hourly 4 chart is approaching Neutral RSI levels for the first time in #10 sessions, which indicates that #8 point recovery could be ahead. In my opinion #1,770.80 – #1,778.80 is the Highest extension and decent Selling opportunity awaits on that fractal . I am expecting new Selling accumulation towards #1,700.80 barrier, still assured that Gold has to respect Technical course and normalize Overbought levels on the aftermath, to cool down the obvious Selling pressure, visible last #2 Weeks. No strategy shift so far as Daily chart is still Bearish on most Moving averages. However, as long as Gold is below #1,778.80, there are more possibilities for a decline. If January #20 – #27 is yet to be repeated, Gold should test the Resistance, and give one more Lower Low extension towards #1,700.80 or less. Gold is in deep Bearish territory as I am expecting #1,678.80 next, and #1,588.80 in succession. I am not interested in Buying, as I will Sell on spot if #1,753.80 breaks. Be ready for ultimate Selling domination and possible multi-Month Bearish sequence towards #1,588.80 and below. As I am not interested in Buying Gold on both Short and Medium-term, I will wait for #1,753.80 break, and Sell from there. Traders shouldn’t be surprised if they see thin Volume throughout today’s session, as historical resemblance shows that on ever bigger proportion decline, Low Volumed session follows.

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