Gold and silver prices prices are solidly up in midday U.S. trading Monday, on strong rebounds from overnight selling pressure. Gold hit a two-week high and silver a three-week high. There is some keener risk aversion in the marketplace to start the trading week, which prompted a “buy-the-dip” move by the precious metals traders, including some safe-haven demand. The near-term technical postures for gold and silver have significantly improved the past few sessions, which also invited some chart-based buying today. February gold futures were last up $28.90 at $1,868.90 and March Comex silver was last up $0.582 at $24.835 an ounce.
Technically, February gold futures prices hit a two-week high today and scored a bullish “outside day” up on the daily bar chart. The gold bulls and bears are now back on a level overall near-term technical playing field but the bulls have momentum.
A downtrend on the daily chart was negated today. Bulls’ next upside price objective is to produce a close in December futures above solid resistance at $1,900.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $1,800.00. First resistance is seen at $1,883.00 and then at $1,900.00. First support is seen at $1,850.00 and then at today’s low of $1,824.80.
Overall, the bias in prices is: Sideways.
By the way, prices are vulnerable to a correction towards 1,866.04.
The projected upper bound is: 1,927.90.
The projected lower bound is: 1,798.67.
The projected closing price is: 1,863.29.
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 28 white candles and 22 black candles for a net of 6 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 92.0488. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 5 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 52.78. 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 buy 5 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 94. This is not a topping or bottoming area. The last signal was a buy 5 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 buy 2 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAU= closed up 0.270 at 1,863.960. Volume was 8,900% above average (trending) and Bollinger Bands were 0% wider than normal.
Open High Low Close Volume 1,863.160 1,864.560 1,860.400 1,863.960 1,224
Technical Outlook Short Term: Neutral Intermediate Term: Bearish Long Term: Bullish
Moving Averages: 10-period 50-period 200-period Close: 1,823.25 1,878.12 1,806.12 Volatility: 18 22 24 Volume: 122 24 6
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 3.2% 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 into XAU= (bullish). Our trend forecasting oscillators are currently bearish on XAU= and have had this outlook for the last 15 periods. Our momentum oscillator has set a new 14-period high while the security price has not. This is a bullish divergence.