Gold prices tumbled Monday morning, falling below $1,900 an ounce as stocks sold off across the board. And, according to Credit Suisse, there is a chance that gold’s plunge is not over until a low of $1,765 an ounce is hit.
The technical level to watch is if $1,897-37 an ounce holds. At the time of writing, December Comex gold futures were down a shocking 3.31% on the day and trading at $1,897.10 an ounce.
If short-term downtrend continues for longer than expected, prices could tumble to $1,765 and even $1,726 an ounce.
Overall, the bias in prices is: Sideways.
The projected upper bound is: 1,999.50.
The projected lower bound is: 1,837.81.
The projected closing price is: 1,918.66.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 31 white candles and 19 black candles for a net of 12 white candles.
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 36.5254. This is not an overbought or oversold reading. The last signal was a buy 10 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 43.82. 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 30 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 -133.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 14 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 2 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAU= closed up 3.908 at 1,916.478. Volume was 8,900% above average (trending) and Bollinger Bands were 50% narrower than normal.
Open High Low Close Volume 1,911.990 1,919.613 1,909.690 1,916.478 11,636
Technical Outlook Short Term: Neutral Intermediate Term: Bearish Long Term: Bullish
Moving Averages: 10-period 50-period 200-period Close: 1,943.48 1,939.38 1,719.66 Volatility: 15 26 23 Volume: 1,164 233 58
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 11.4% above its 200-period moving average and is in an downward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future.
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 20 periods.