Gold 1 OZ (XAU=X) looks set to trade lower soon

Gold 1 OZ (XAU=X) looks set to trade lower soon

Gold 1 OZ (XAU=X) looks set to trade lower soon

Gold is sitting on support but with the primary forces looking bearish further weakness is anticipated in the days ahead. The S&P 500 is carving out a rising wedge, which we’ll need to wait on but could soon provide a decisive move. The DAX is carving out an ‘RST’ pattern at a long-term area of interest, could mean another reversal lower is coming. Crude oil is at a long-term point of interest, keep an eye on how it reacts here with equity markets also possibly at an inflection point.

Overall, the bias in prices is: Sideways.

By the way, prices are vulnerable to a correction towards 1,292.34.

The projected upper bound is: 1,313.78.

The projected lower bound is: 1,265.92.

The projected closing price is: 1,289.85.

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 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 14.2709. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 14 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 42.19. 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 29 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 -98. This is not a topping or bottoming area. The last signal was a buy 0 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 3 period(s) ago.

Rex Takasugi – TD Profile

PREC.M.XAU= closed down -3.050 at 1,289.700. Volume was 8,900% above average (trending) and Bollinger Bands were 19% narrower than normal.

Open High Low Close Volume___
1,291.9601,294.4251,287.9501,289.700 19,000

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

Moving Averages: 10-period 50-period 200-period
Close: 1,302.09 1,307.97 1,248.12
Volatility: 11 12 11
Volume: 1,900 380 95

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 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

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