Gold 1 OZ (XAU=X) improved trader/investor risk appetite to start the trading week
Gold prices are solidly lower in morning U.S. dealings Monday, on a corrective and profit-taking pullback from recent gains. Improved trader/investor risk appetite to start the trading week is also a negative for the safe-haven metals.
A rebound in the U.S. dollar index today is also a bearish daily element for the precious metals. August gold futures were last down $15.20 an ounce at $1,330.50. July Comex silver prices were last down $0.316 at $14.715 an ounce.
Technically, the gold bulls still have the overall near-term technical advantage. Bulls’ next upside price objective is to produce a close in June futures above solid resistance at the February high of $1,361.50.
Bears’ next near-term downside price breakout objective is pushing August futures prices below solid technical support at $1,310.00. First resistance is seen at today’s high of $1,341.70 and then at $1,350.00. First support is seen at $1,325.00 and then at $1,320.00.
Overall, the bias in prices is: Upwards.
By the way, prices are vulnerable to a correction towards 1,301.63.
The projected upper bound is: 1,349.66.
The projected lower bound is: 1,308.21.
The projected closing price is: 1,328.93.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 24 white candles and 26 black candles for a net of 2 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 70.9606. This is not an overbought or oversold reading. The last signal was a sell 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 66.24. This is not a topping or bottoming area. However, the RSI just crossed below 70 from a topping formation. This is a bearish sign. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 0 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 78. This is not a topping or bottoming area. The last signal was a sell 0 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 7 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAU= closed down -12.094 at 1,328.206. Volume was 8,900% above average (trending) and Bollinger Bands were 91% wider than normal.
Open High Low Close Volume___
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 1,313.47 1,290.27 1,264.49
Volatility: 13 10 11
Volume: 1,961 392 98
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 5.0% above its 200-period moving average and is in an upward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. Our volume indicators reflect very strong flows of volume out of XAU= (bearish). Our trend forecasting oscillators are currently bullish on XAU= and have had this outlook for the last 19 periods.