Gold 1 OZ (XAU=X) Markets Rally To Show Signs Of Strength Again

Gold 1 OZ (XAU=X) Markets Rally To Show Signs Of Strength Again

Gold 1 OZ (XAU=X) Markets Rally To Show Signs Of Strength Again

Gold markets rallied a bit during the trading session on Thursday, reaching towards the $1580 level, an area that has attracted a little bit of attention recently, but longer-term it’s likely that the market is going to try to get to the $1600 level. At this point, the market will have a lot of headwinds to break above, so a daily close above that level could kick off the next leg higher. That in fact could have the markets looking towards the $1800 level. At this point, the market should continue to see buyers on dips, as the 50 day EMA is starting to reach towards current trading. The 50 day EMA of course is an indicator that a lot of people pay attention to, and it does seem to be crucial in the gold market for that matter.

Looking at this chart, if we were to break down below the 50 day EMA then I think we go looking towards the $1500 level underneath. At that point, the 200 day EMA should start to come into play, which of course is a longer-term indicator that will attract a lot of attention as well. Ultimately, the market does find buyers going forward, but the question isn’t so much as to whether or not if it happens, but when. I like the idea of buying dips because it gives us an opportunity to pick up gold “on the cheap”, but in the end term, taking a bit of caution and building up a core position slowly is probably the best way going forward.

Technical Indicators

Overall, the bias in prices is: Upwards.

The projected upper bound is: 1,604.79.

The projected lower bound is: 1,551.49.

The projected closing price is: 1,578.14.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 32 white candles and 17 black candles for a net of 15 white candles.

A long lower shadow occurred. This is typically a bullish signal (particularly when it occurs near a low price level, at a support level, or when the security is oversold).

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 73.7375. This is not an overbought or oversold reading. The last signal was a sell 13 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 58.43. 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 13 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 9 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 9 period(s) ago.

Rex Takasugi – TD Profile

PREC.M.XAU= closed down -0.160 at 1,575.815. Volume was 8,900% above average (trending) and Bollinger Bands were 38% narrower than normal.

Open     High      Low     Close     Volume___
1,575.9981,576.0351,575.1751,575.815 276
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 1,567.76 1,536.18 1,466.03
Volatility: 12 11 15
Volume: 28 6 1

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 7.5% above its 200-period moving average and is in an downward trend. Volatility is relatively normal 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 4 periods.

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