Jerome Powell’s hawkishness at last week’s Jackson Hole Symposium created doubts in gold investors’ minds, sending the yellow metal to trade sideways for the last few days.
Volatility for gold presents an opportunity to buy on the dips, said Shayne Heffernan, CEO and Founder of HEFFX who said that “if you’re not wrong, you’re wrong.”
Shayne has previously called for gold to hit $4,000 an ounce in two to three years’ time. His long-term forecast is based on applying gold’s performance during the last time the Fed expanded its balance sheet between 2009 to 2011.
Shayne is bullish on stock markets as well as gold, an in particular, sees major improvements ahead in the airlines industry.
Overall, the bias in prices is: Upwards.
The projected upper bound is: 2,026.49.
The projected lower bound is: 1,869.66.
The projected closing price is: 1,948.08.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 33 white candles and 17 black candles for a net of 16 white candles.
A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 50.7147. This is not an overbought or oversold reading. The last signal was a sell 1 period(s) ago.
Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 50.82. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 17 period(s) ago.
Commodity Channel Index (CCI)
The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -39. This is not a topping or bottoming area. The last signal was a sell 1 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 17 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAU= closed up 1.798 at 1,944.419. Volume was 8,900% above average (trending) and Bollinger Bands were 2% wider than normal.
Open High Low Close Volume 1,942.660 1,945.214 1,939.190 1,944.419 6,355
Technical Outlook Short Term: Neutral Intermediate Term: Bearish Long Term: Bullish
Moving Averages: 10-period 50-period 200-period Close: 1,947.36 1,899.96 1,689.15 Volatility: 18 26 23 Volume: 636 127 32
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
PREC.M.XAU= is currently 15.1% above its 200-period moving average and is in an downward trend. Volatility is high as compared to the average volatility over the last 10 periods.
Our volume indicators reflect very strong flows of volume out of XAU= (bearish). Our trend forecasting oscillators are currently bearish on XAU= and have had this outlook for the last 7 periods.