Gold Short and Medium-term

Gold is so far holding the #1,900.80 - #1,905.80 belt intact and Hourly 4 chart after pricing it’s Higher Low it is extending it’s Channel Up with #1,919.80 as the next Lower High Resistance. Despite another day of rebound on DX, Gold is less affected as it continues to be more tied to Stock markets (Gold # -0.14%, Stock markets # -1.67%). Note how Gold holds it’s correlation with Stock markets almost on every aspect. Gold is once again used as a safe-haven asset as Stimulus hopes/speculators are keeping the Buying bias alive, as Stock markets are not Trading on gains anymore / also without signs of a recovery as they still didn't found the Support. As long as this setup continues, Selling sentiment will be postponed. Buying pressure also comes from the global pullback on equities after the disappointing European PMI data who raise flags for a possible economic slowdown. Especially if the Fundamental announcements later this week also disappoint. I remain Bearish of course on Medium-term with my Target unchanged, but just to secure my capital and use every opportunity to spot most accurate pattern, I will carefully monitor my position in order to prevent unexpected scenarios. #1,919.80 is my Resistance and if broken I will act accordingly. Taking the Bond notes in consideration, testing their Support last week, Gold didn’t struggled to generate much upside momentum. In recent sesssions, Gold was on a run towards #MA200 (priced at #1,914.80), but it seems like a strong Resistance, drawing the Daily chart candles to within touching distance of two trendline Supports. Beyond here, Hourly 4 structure offers September #21 opening level as my new Short-term Target. Weekly structure, as highlighted in my reports, crossed paths with a 1:1 correction, exactly took place on August #2013. As is evident from the chart, Selling has so far been reasonably strong from #1,920.80 Top, as every Resistance test resulted as an #40$ decline. The Technicals on the Daily chart are showing Bearish signs and I can spot with certainty that Gold is Bearish on Medium-term. I may wait for candlestick configuration develops (Break of Channel Up) before entering additional Sell order. This helps recognize Buyers intent and provides Traders with entry and risk levels to work with. Gold bounced back well enough on the #1,910’s level (which is the former Weekly Resistance and filled nicely last week’s gap). On the Hourly 4 chart, Gold is using the #1,892.80 as a Support (see how it makes Higher Low on it), so that may build up a new downtrend. I am expecting symmetrical retrace to the September #24 High, #1,885.80 and #1,870.70 (also due to the currently Overbought Daily chart). Also see how the RSI on Hourly 4 chart has reached its short term Resistance and remains on a Channel Down since the October #3 High. Gold is still on the Higher levels of the recent downtrend despite DX approaching its October Resistance, as Stock markets but mostly Bonds market have dipped more than #2.00% of the September’s aggressive gains. See how Gold is basically consolidating around the #MA50 zone on the Hourly 4 chart, which is normal ahead of this week’s high impact Fundamental announcements which should be Bullish for Stock markets, since it is a sole reason why Gold is ranged and not dipping. The fact that Gold has kept its Bearish momentum on the Daily chart despite the Stock markets still without a recovery, reveals the Bearish underlying Medium-term trend. I remain Bearish on Medium-term, waiting for Bullish consolidation to reach the Top and then continue Selling Gold on monthly fractal. If I had to guess configuration on today’s and tomorrow’s session, side Swings on both sides without a major move, within #1,900.80 - #1,919.80 Neutral zone. I will carefully calculate Risk/Reward ratio and act accordingly. My pick is Hourly 4 Higher Low extension near #1,892.80, and #1,880.80 extension (my Target).