Gold 1 OZ (XAU=X) Markets Break Barriers

Gold 1 OZ (XAU=X) Markets Break Barriers

Gold 1 OZ (XAU=X) Markets Break Barriers

Gold markets rallied significantly during the trading session showing signs of strength again as we have broken above the $1600 level. By doing so, the market looks as if it is ready to continue going higher, perhaps breaking above the most recent high just above that level. If it does, then I believe that the market can continue to go towards the $1650 level, perhaps even further than that. I like the idea of buying pullbacks as they occur, because it’s obvious that gold is going to continue to rally significantly.

Pullbacks continue to be buying opportunities, and therefore I think looking for value is the only way to go. I think given enough time the market will eventually find reasons for gold go higher, not the least of which will be the central banks around the world keeping very loose monetary policy. Furthermore, there are a lot of concerns about the global growth situation and of course the coronavirus issues. Look at pullbacks as value, as I have been saying for quite some time as gold is certainly bullish and should continue to be so. Shorting is all but impossible.

Technical Indicators

Overall, the bias in prices is: Upwards.

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

The projected upper bound is: 1,638.32.

The projected lower bound is: 1,582.74.

The projected closing price is: 1,610.53.

Candlesticks

A white body occurred (because prices closed higher 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 32 white candles and 17 black candles for a net of 15 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 90.9686. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 16 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 68.51. 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 16 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 188.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 2 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 buy 1 period(s) ago.

Rex Takasugi – TD Profile

PREC.M.XAU= closed up 6.202 at 1,607.867. Volume was 8,900% above average (trending) and Bollinger Bands were 8% narrower than normal.

Open     High      Low     Close     Volume___
1,601.5001,610.7961,599.2001,607.867 74,057
Technical Outlook 
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 1,579.19 1,544.14 1,470.56
Volatility: 9 11 15
Volume: 7,406 1,481 370

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 9.3% above its 200-period moving average and is in an upward 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 bullish on XAU= and have had this outlook for the last 0 periods. The security price has set a new 14-period high while our momentum oscillator has not. This is a bearish divergence.

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