GOLD ANALYSIS 03/03/2023
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Gold Analysis - 03/03/2023
GOLD IS HIGH RISKY AND VOLATILE IN THIS WEEK.MUST USE STOPLOSS TO SAFE YOUR CAPITAL
The current state of gold in the market is that it has encountered resistance at the level of $1,845.80, which was previously acting as support during the configuration on February 15th. Although it has struggled to surpass this level, a continuation of the downtrend cannot be called for unless the level of $1,823.80 breaks. This is because the dominant pattern on the hourly four chart is a neutral rectangle. Therefore, it is suggested to continue operating with selling orders during this corrective consolidation, while monitoring the bear and bull clash to determine which side will prevail. There is a higher probability of the downside.
An interesting cycle from August 15th to September 26th has caught the attention of technical analysts. The current fractal has many similarities with this cycle. The selling sequence started on February 2nd with a non-stop decline, which has delivered three declines and three relief rallies so far. If the gold market honors this cycle and repeats it, another downturn towards the strong support zone of $1,792.80 to $1,800.80 can be expected. This zone has shown strong durability thus far, and there are 14 sessions left for the price-action to replicate the fractal. The significance of the MA50 on the daily chart since early November must be realized, as the December 5th trendline was invalidated on a full-scale bullish breakout. The current parabolic decline is expected to be far from over, and after an imminent benchmark test at $1,800.80, an approximate 100 point correction towards the resistance zone of $1,862.80 to $1,872.80 can be expected, followed by a potential test of the psychological benchmark of $1,900.80.
From a fundamental standpoint, the Fed has provided the market with assurances regarding its battle against inflation. Powell has pledged to fight for years as long as the state of inflation persists. This will cause the DX to constantly suffer short and medium-term declines in the form of aggressive spikes. The level of $1,823.80 is of utmost importance as it will provide the sentiment for the next 1 to 3 session horizon. Despite a miraculous recovery in today's session for the DX, the price-action for gold has not been fairly symmetrical. The price-action is currently near the estimated resistance zone of $1,842.80 to $1,852.80, where the first wave of recovery candles is expected to arrive. Although the relief rally has revived buyers, the daily chart's volume remains strong, indicating signs of exhaustion and a potential temporary top. Gold is currently isolated within the consolidation phase on the hourly four chart, in the final sessions of the current selling sequence. If the level of $1,845.80 resistance breaks, the optimal targets for buyers will be $1,852.80 and $1,862.80. However, the break of the level of $1,823.80 support is crucial as it will confirm a test of the psychological benchmark of $1,800.80.
领英推荐
Gold may have a Pull back near 1852 till 1831-1835 region.
After we expect some more bullish momentum in gold till 1862 level.
?Syed Abdullah shah
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