XAUUSD Three Hour Chart: Bearish: Mirrors GDX Action
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This is a 3 Hour Chart. it is more bearish than the daily. Here are ONE DOZEN negatives I see in-XAUUSD, and why I feel-Gold is a sell: 1. Sell Fractals in effect (red rectangle on chart). 2. Alligator jaws OPEN in tandem with sell Fractal. Alligator FEEDING IN DOWN-TREND. 3. Chop indicator (under chart) is above the 38.2 shaded area. This indicates a ZERO trend and, at best, sloppy action with a downward bias. 4. Phase energy (lower top indicator) is heading LOWER. The action is below the zero line. Decidedly bearish . 5. Momentum (middle top indicator) is the 5/34 measure, and this is bearish action and is heading lower. Histogram within is also under zero line. 6. Prices are trading BELOW the Ichimoku Cloud . 8. Prices are trading below the Ki jun-Sen baseline of the Ichimoku Cloud . This is a sell signal. 9. Prices are trading below the thick red Ichimoku Cloud conversion line. This is a sell signal. 9. The red Ichimoku Cloud conversion line direction is heading lower. This is a sell signal. 10. The Ki jun-Sen baseline of the Ichimoku Cloud direction is heading lower. This is a sell signal. 11. The CHOP ZONE indicator (under chart) is red, indicating a down trend. 12. RSI/ Stochastic (top) is heading lower after a bearish cross. My comments: very bearish signs. The sell signals are only moderately strong because CHOP is NOT BELOW the shaded area. More bearish than the daily chartdaily chart. IF THERE IS A TECHNICAL REBOUND, there must be TREND or price action will just zig-zag. Decision: do not go long-XAUUSD. The path of least resistance is likely to be lower. Good luck to you. Don.
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