Gold 1 OZ (XAU=X) bulls in a much better technical posture

Gold 1 OZ (XAU=X) bulls in a much better technical posture

Gold 1 OZ (XAU=X) bulls in a much better technical posture

Gold prices are slightly lower in early-morning U.S. trading Tuesday. Prices did poke to a four-week high overnight. The yellow metal is seeing a normal corrective pullback following Monday’s good gains, which put the bulls in a much better technical posture. June gold futures were last down $2.00 an ounce at $1,299.80. July Comex silver was last up $0.038 at $14.815 an ounce.

World stock markets were mixed overnight, with European indexes mostly higher and Asian stocks mostly weaker. U.S. stock indexes are pointed toward higher openings when the New York day session begins. The world stock markets are trying to stabilize following Monday’s rout in the wake of the failed U.S. trade talks and the imposition of new tariffs by the U.S. and China against each other.

There has been technical damage inflicted on U.S. stock indexes to suggest they have put in near-term tops and can now only trade sideways at best for at least the time being. That’s good news for precious metals market bulls, as the safe-haven metals are a competing asset class with equities.

The key “outside markets” today see the U.S. dollar index firmer. The greenback bulls have faded a bit recently. Meantime, Nymex crude oil prices are higher and trading around $62.00 a barrel. There are technical clues the oil market has put in a near-term top.

Overall, the bias in prices is: Sideways.

The projected upper bound is: 1,316.86.

The projected lower bound is: 1,277.11.

The projected closing price is: 1,296.98.

Candlesticks

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 26 white candles and 24 black candles for a net of 2 white candles.

Momentum Indicators

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.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 78.1576. This is not an overbought or oversold reading. The last signal was a buy 15 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 57.75. 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 57 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 222.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 7 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 11 period(s) ago.

Rex Takasugi – TD Profile

PREC.M.XAU= closed down -2.880 at 1,296.775. Volume was 8,900% above average (trending) and Bollinger Bands were 38% narrower than normal.

Open High Low Close Volume___
1,299.8601,303.2581,293.0801,296.775 20,218

Technical Outlook
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish

Moving Averages: 10-period 50-period 200-period
Close: 1,283.63 1,291.46 1,254.93
Volatility: 9 10 11
Volume: 2,022 404 101

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.

Summary

PREC.M.XAU= is currently 3.3% above its 200-period moving average and is in an upward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods. Our volume indicators reflect very strong flows of volume into XAU= (bullish). Our trend forecasting oscillators are currently bullish on XAU= and have had this outlook for the last 0 periods.

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