Gold 1 OZ (XAU=X) market is overbought

Gold 1 OZ (XAU=X) market is overbought

Gold 1 OZ (XAU=X) market is overbought

Gold markets have gone back and forth during the trading session on Monday as we continue to hang around the $1400 level. At this point, the market has formed a couple of shooting stars on the weekly charts, so at this point it looks like we are trying to break out but may need to pullback in order to build up enough momentum to go higher.

Quite frankly, we still have a massive gap lower, somewhere near the $1350 level. If we were to pull back to that area and show signs of support I’d be more than willing to start buying gold at that point.

Overall, the bias in prices is: Upwards.

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

By the way, prices are vulnerable to a correction towards 1,353.06.

The projected upper bound is: 1,421.83.

The projected lower bound is: 1,358.77.

The projected closing price is: 1,390.30.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 2 white candles and 8 black candles for a net of 6 black candles. During the past 50 bars, there have been 25 white candles and 25 black candles.

Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.

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 20.4718. This is not an overbought or oversold reading. The last signal was a sell 8 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 55.84. 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 3 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 -93. This is not a topping or bottoming area. The last signal was a sell 8 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 -7.000 at 1,388.200. Volume was 8,900% above average (trending) and Bollinger Bands were 88% wider than normal.

Open High Low Close Volume___
1,395.2001,396.2551,386.1101,388.200 16,052

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

Moving Averages: 10-period     50-period     200-period
Close: 1,404.57 1,331.42 1,284.04
Volatility: 20 15 12
Volume: 1,605 321 80

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 8.1% 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 40 periods. our momentum oscillator has set a new 14-period low while the security price has not. This is a bearish divergence.

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