Gold 1 OZ (XAU=X) Markets Gap To Kick Off The Week

Gold 1 OZ (XAU=X) Markets Gap To Kick Off The Week

Gold 1 OZ (XAU=X) Markets Gap To Kick Off The Week

Gold markets gapped higher to kick off the week on Monday, as the market had hit the 50 day EMA during the Friday session. At this point, the market went back and forth to show a lot of confusion, and at this point in time it does look like there is a little bit of a bit here. The Federal Reserve is being pegged into a corner right now to cut rates at least twice, if not three times. That should of course offer a significant amount of bullish pressure for gold, reaching towards the $1650 level.

The market breaking down below the massive candlestick during the trading session on Friday would be rather negative, reaching down to the $1550 level. Breaking down below their opens up the door to the $1500 level, where the 200 day EMA currently resides. With that being the case, I believe that a lot of value hunters will come back into the marketplace to take a bit of value hunting into account. Otherwise, I think we just simply continue the overall uptrend and that is my base case. To the upside I see the $1700 level as a target but it is going to be very noisy on the way out, so expect to see a lot of choppiness and you should look at gold from the standpoint of a longer-term trader, and as more of an investment than any type of short-term trading opportunity. With this much fear is there is out there right now, it makes perfect sense to see gold rally.

Technical Indicators

Overall, the bias in prices is: Upwards.

By the way, prices are vulnerable to a correction towards 1,567.66.

The projected upper bound is: 1,631.25.

The projected lower bound is: 1,550.32.

The projected closing price is: 1,590.79.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 31 white candles and 18 black candles for a net of 13 white candles.

A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.

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 20.8130. This is not an overbought or oversold reading. The last signal was a sell 5 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 48.79. 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 sell 5 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 -60. This is not a topping or bottoming area. The last signal was a sell 4 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 1 period(s) ago.

Rex Takasugi – TD Profile

PREC.M.XAU= closed up 1.175 at 1,588.985. Volume was 8,900% above average (trending) and Bollinger Bands were 90% wider than normal.

Open     High      Low     Close     Volume___
1,590.4711,590.4961,588.6901,588.985 418
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 1,621.26 1,569.97 1,485.98
Volatility: 26 16 16
Volume: 42 8 2

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 6.9% 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 9 periods.

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