Gold 1 OZ (XAU=X) Markets Gap And Go On Thursday
Gold markets gapped to open up the session on Thursday and then shot straight up in the air. We reached towards the top of the bearish candle from Tuesday, but then pulled back slightly midday. Ultimately, this is a market that is probably being used for safety more than anything else right now. I do believe in the longer-term uptrend in this market, but I also recognize that we have a lot of moving pieces right now that could cause quite a bit of trouble. Ultimately, this is a market that seems to be supported at the 50 day EMA, and now that we have broken above the neutral candlestick from the trading session on Wednesday it’s likely that we will try to keep breaking higher.
That being said, the jobs number could throw a lot of volatility in this market, meaning that you could get a significant pullback or explosion to the upside. At this point it’s a bit of a gamble in the short term but longer term it certainly looks as if we are going to go higher. A break above the $1700 level would be a very bullish sign and could send this market looking towards the $1800 level, and then eventually the $2000 level. I do think that buyers will continue to look for value. If we broke down below the neutral candlestick for the Wednesday session, that could send this market down towards the 200 day EMA where I suspect there would be even more buyers. Either way, I’m not interested in shorting this market.
Overall, the bias in prices is: Upwards.
The projected upper bound is: 1,686.97.
The projected lower bound is: 1,537.32.
The projected closing price is: 1,612.15.
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 28 white candles and 22 black candles for a net of 6 white 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 37.1841. This is not an overbought or oversold reading. The last signal was a sell 2 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 53.79. 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 buy 9 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 51. This is not a topping or bottoming area. The last signal was a buy 9 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 6 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAU= closed up 20.592 at 1,611.182. Volume was 8,900% above average (trending) and Bollinger Bands were 140% wider than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 1,591.52 1,591.10 1,512.61
Volatility: 36 30 20
Volume: 6,361 1,272 318
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 6.5% 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 13 periods.