Gold 1 OZ (XAU=X) continues to remain at multi-day lows and is straddling a strong technical level

Gold 1 OZ (XAU=X) continues to remain at multi-day lows and is straddling a strong technical level

Gold 1 OZ (XAU=X) continues to remain at multi-day lows and is straddling a strong technical level

Gold and silver prices are steady to slightly lower in early U.S. trading Tuesday. Gold prices hit a three-week low overnight. A higher U.S. dollar index that is closing in on its for-the-move high scored in March continues to squelch buying interest in the precious metals markets. June gold futures were last down $0.50 an ounce at $1,293.70. May Comex silver was last down $0.109 at $14.99 an ounce

Technically, the gold bulls still have the overall near-term technical advantage but have faded badly and need to show fresh power soon to avoid more serious chart damage. Bulls’ next upside price objective is to produce a close in June futures above solid resistance at the March high of $1,330.80. Bears’ next near-term downside price breakout objective is pushing prices below solid technical support at the March low of $1,287.50. First resistance is seen at Monday’s high of $1,301.70 and then at $1,305.00. First support is seen at today’s  low of $1,289.50 and then at $1,287.50.

Overall, the bias in prices is: Sideways.

By the way, prices are vulnerable to a correction towards 1,292.36.

The projected upper bound is: 1,314.90.

The projected lower bound is: 1,267.18.

The projected closing price is: 1,291.04.

Candlesticks

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 27 white candles and 23 black candles for a net of 4 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 11.7773. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 13 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 42.57. 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 28 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 -122.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 4 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 sell 2 period(s) ago.

Rex Takasugi – TD Profile

PREC.M.XAU= closed up 3.500 at 1,290.915. Volume was 8,900% above average (trending) and Bollinger Bands were 17% narrower than normal.

Open High Low Close Volume___
1,287.1501,291.8151,284.7601,290.915 18,239

Technical Outlook
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bullish

Moving Averages: 10-period 50-period 200-period
Close: 1,304.16 1,307.78 1,247.95
Volatility: 11 12 11
Volume: 1,824 365 91

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 3.4% 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 3 periods.

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