Gold and silver futures prices are moderately higher but off their session highs in midday U.S. trading Wednesday. Bullish traders stepped in to buy Tuesday’s sharp dip in prices. A weaker U.S. dollar index at mid-week also aided the precious metals market bulls. December gold futures were last up $10.80 at $1,905.20 and December Comex silver was last up $0.191 at $24.32 an ounce.
Gold and silver came off their daily highs and pared daily gains by about half when the U.S. dollar index also dropped well down from its session high. About the same time, news reports said U.S. House speaker Pelosi and Treasury Secretary Mnuchin are still far apart on any stimulus package for Americans—suggesting a deal won’t get done until after the election, or maybe not even this year.
Technically, December gold futures bulls have the overall near-term technical advantage as trading has turned choppy. Bulls’ next upside price objective is to produce a close in December futures above solid resistance at the October high of $1,927.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at the September low of $1,851.00. First resistance is seen at today’s high of $1,917.50 and then at Tuesday’s high of $1,930.60. First support is seen at today’s low of $1,885.00 and then at last week’s low of $1,877.10.
Overall, the bias in prices is: Sideways.
By the way, prices are vulnerable to a correction towards 1,897.15.
The projected upper bound is: 1,969.31.
The projected lower bound is: 1,809.93.
The projected closing price is: 1,889.62.
A black body occurred (because prices closed lower 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 25 white candles and 25 black 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 29.9318. This is not an overbought or oversold reading. The last signal was a sell 7 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 46.45. 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 47 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 -12. This is not a topping or bottoming area. The last signal was a sell 2 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 8 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAU= closed down -7.867 at 1,893.020. Volume was 8,900% above average (trending) and Bollinger Bands were 38% narrower than normal.
Open High Low Close Volume 1,899.310 1,902.425 1,891.250 1,893.020 6,322
Technical Outlook Short Term: Neutral Intermediate Term: Bearish Long Term: Bullish
Moving Averages: 10-period 50-period 200-period Close: 1,900.51 1,929.63 1,751.34 Volatility: 20 26 23 Volume: 632 126 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 8.1% above its 200-period moving average and is in an downward trend. Volatility is 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 37 periods.