GOLD 1 OZ (XAU=X) Down, But Potential Upside Spark Looms

GOLD 1 OZ (XAU=X) Down, But Potential Upside Spark Looms

GOLD 1 OZ (XAU=X) Down, But Potential Upside Spark Looms

Global stock markets were mostly lower overnight, led by losses in Asia, on fears of a protracted trade war between the world’s two largest economies: the U.S. and China. U.S. stock indexes are pointed toward narrowly mixed openings when the New York day session begins.

The U.S. on Tuesday is bringing back economic sanctions on Iran that were lifted by the Obama administration as part of an Iran non-nuclear deal that President Trump cancelled. Likely rising tensions between the U.S. and Iran could be the next geopolitical flashpoint in the world marketplace, which could boost safe-haven gold and silver prices. Reports said Iranians are purchasing and hoarding gold on fears of a collapse in the Iranian economy.

Gold prices were trading higher in morning trade on Monday amid lingering concerns over the US-China trade conflict, while a stronger American currency capped the safe-haven upside

Overall, the bias in prices is: Downwards.

Note: this chart shows extraordinary price action to the downside.

By the way, prices are vulnerable to a correction towards 1,259.22.

The projected upper bound is: 1,224.75.

The projected lower bound is: 1,188.68.

The projected closing price is: 1,206.72.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 20 white candles and 30 black candles for a net of 10 black 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 20.3678. This is not an overbought or oversold reading. The last signal was a buy 0 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 31.06. 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 1 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 -149.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 10 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 0 period(s) ago.

Rex Takasugi – TD Profile

PREC.M.XAU= closed down -4.530 at 1,208.500. Volume was 8,900% above average (trending) and Bollinger Bands were 4% wider than normal.

Open High Low Close Volume___
1,213.2601,217.8501,206.7501,208.500 16,685

Technical Outlook
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 1,218.98 1,256.78 1,296.67
Volatility: 8 9 11
Volume: 1,669 334 83

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 6.8% below its 200-period moving average and is in an downward 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 out of XAU= (bearish). Our trend forecasting oscillators are currently bearish on XAU= and have had this outlook for the last 34 periods.

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