GOLD ANALYSIS 24/02/2023

Gold has tested the Hourly 4 chart’s Resistance zone at #1,842.80 - #1,852.80, but has faced rejection so far. This is the level that needs to be broken for Gold to resume the uptrend and engage the relief rally on Hourly 4 chart. However, the neckline keeps the price-action bearish and isolated within a newly formed Descending Channel. The Bullish breakout point is currently seen trading at #1,846.80, while Sellers Target remains the #1,814 & 1,802 psychological benchmark. If Gold close below 1818$ in H1 or H4.

Despite the much-needed support rejection on Bond Yields, Gold isn't reacting accordingly and instead is mostly following/mimicking the DX trend. The DX trend is struggling to break back above its Weekly chart’s (#1W) Resistance zone. Local Highs on DX indicate weakness on Gold, but rejection near the Resistance on DX should be Bullish for Gold (Short-term).

The Daily chart is showing excellent Bearish Technicals, and as long as the #1,842.80 - #1,852.80 Resistance zone holds, the next Short-term Target is expected to be at the next barrier at #1,802. If #1,800.00x breaks, there is a symmetrical level of #1,778.80 Lower Low’s extension to be mindful of, but after such values, the way is open towards #1,752.80 Medium-term Support fractal.

The proposed Channel is still dominating the Trade, and Price-action is currently on (# -0.15%) shift as Buyers are attempting to find the equilibrium between DX above local High’s and Gold on proportional decline. Investors are taking profits near the #1,800’s zone, stalling the downtrend within the Bearish multi-Month cycle, where the downtrend is rejected so far every #1 - #3 Hourly 4 chart’s candles.

I am Expecting today's session with High Impact announcements to favor Sellers later on and with the combination of Technical necessity for #1,802 benchmark test and Fundament developments which will have a Bearish effect on Gold.

Sell on Highs - Corrections between 1824-1831$ Area. Break Below 1818$ leads to our targets.

Syed Abdullah Shah

[email protected]

+971544708771

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