Gold 1 OZ (XAU=X) holding above the critical psychological level of $1,300
Gold prices are holding above the critical psychological level of $1,300 an ounce as momentum in the U.S. manufacturing sector was mixed in January.
Wednesday, a U.S. Commerce Department report showed U.S. durable-goods orders increased by 0.4% in January, up from December’s 1.3% increase. The headline data was better than expected as economists were expecting a drop of 0.5%.
However, stripping out the volatile transportation sector, core durable goods orders dropped 0.1% in January. Economists were expecting to see an increase of 0.1%.
The gold market is seeing little reaction to the data but continues to hold recent gains. April gold futures last traded at $1,307.40 an ounce, up 0.71% on the day.
Overall, the bias in prices is: Upwards.
The projected upper bound is: 1,332.99.
The projected lower bound is: 1,287.96.
The projected closing price is: 1,310.47.
A white body occurred (because prices closed higher 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 26 white candles and 24 black candles for a net of 2 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 88.8884. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 3 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 53.47. 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 14 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 buy 3 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 sell 11 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAU= closed up 8.209 at 1,309.969. Volume was 8,900% above average (trending) and Bollinger Bands were 51% wider than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 1,295.52 1,303.42 1,246.65
Volatility: 13 11 11
Volume: 1,990 398 99
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 5.1% 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 into XAU= (bullish). Our trend forecasting oscillators are currently bearish on XAU= and have had this outlook for the last 7 periods.