Gold 1 OZ (XAU=X) Markets Continue To Look Bullish

Gold 1 OZ (XAU=X) Markets Continue To Look Bullish

Gold 1 OZ (XAU=X) Markets Continue To Look Bullish

Gold markets have continued to look very bullish over the last several weeks, and at this point it looks as if the market is trying to get towards the $1600 level. The $1600 level above continues to offer plenty of resistance as it has been the highs lately, but at this point it looks as if the market is still looking to go higher, and if the weekly candlestick and close above the $1600 level, then it’s likely to go much higher. Short-term pullbacks at this point should continue to find plenty of support at the $1550 level, not only because we have seen a significant amount of buying pressure there, but also because the 50 day EMA is getting ready to reach towards that area.

All things being equal, we are taking a look at this market through the prism of an ascending triangle, and therefore it’s yet another reason the technical analysts will look at gold through bullish prism. That being said though, you should keep in mind that the $1600 level has been an area of trouble more than once, from both a support and resistance standpoint. I do believe that we will probably see a bit of a pullback, but given enough time traders will probably continue to look for value in this market, and at this point it’s difficult to imagine a scenario where you should be selling gold as central banks around the world continue to loosen monetary policy, and of course there are still a lot of concerns when it comes to the coronavirus and global slowdown issues, so there are plenty of reasons why gold should go higher.

Technical Indicators

Overall, the bias in prices is: Upwards.

The projected upper bound is: 1,632.65.

The projected lower bound is: 1,576.67.

The projected closing price is: 1,604.66.

Candlesticks

A big white candle occurred. This is generally considered bullish, as prices closed significantly higher than they opened. If the candle appears when prices are “low,” it may be the first sign of a bottom. If it occurs when prices are rebounding off of a support area (e.g., a moving average, trendline, or retracement level), the long white candle adds credibility to the support. Similarly, if the candle appears during a breakout above a resistance area, the long white candle adds credibility to the breakout.
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 91.8830. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 15 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 66.80. 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 15 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 183.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 1 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 0 period(s) ago.

Rex Takasugi – TD Profile

PREC.M.XAU= closed up 21.100 at 1,601.900. Volume was 8,900% above average (trending) and Bollinger Bands were 21% narrower than normal.

Open     High      Low     Close     Volume___
1,583.0601,605.1001,582.7101,601.900 633
Technical Outlook 
Short Term: Overbought
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 1,574.06 1,541.48 1,469.00
Volatility: 9 11 15
Volume: 63 13 3

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 9.0% 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 6 periods. The security price has set a new 14-period high while our momentum oscillator has not. This is a bearish divergence.

The following two tabs change content below.
HEFFX has become one of Asia’s leading financial services companies with interests in Publishing, Private Equity, Capital Markets, Mining, Retail, Transport and Agriculture that span every continent of the world. Our clearing partners have unprecedented experience in Equities, Options, Forex and Commodities brokering, banking, physical metals dealing, floor brokering and trading.

Latest posts by HEFFX Australia (see all)