Gold 1 OZ (XAU=X) Markets Relatively Stable

Gold 1 OZ (XAU=X) Markets Relatively Stable

Gold 1 OZ (XAU=X) Markets Relatively Stable

Gold markets went back and forth during the trading session on Tuesday, as we continue to show a lot of volatility and sideways action. I think at this point we are trying to determine whether or not the $1450 level will in fact offer enough support to keep the market afloat, and if it does is very likely that the market will go looking towards the 50 day EMA above as a potential target, and then something to break through.

If it does, then the $1500 level comes in the focus which of course is a large, round, psychologically significant figure. At this point, I suspect that the market will continue to offer plenty of buying opportunities on dips, as we have clearly seen a lot of support come into play.

This doesn’t mean that it will be easy to go higher, just that there are a lot of potential headwinds out there to the economy and geopolitical forces that could send gold much higher based upon the fear trade or just simple central bank easing.

At this point, it looks as if gold has found a bit about bottom for the short term, and that we should see buyers continue to step in on dips. If and when they do, I’ll be there to pick up value in small bits and pieces as I think building a core position is probably the best way to go, and certainly likely to be very profitable over the next couple of years.

Technical Indicators

Overall, the bias in prices is: Sideways.

By the way, prices are vulnerable to a correction towards 1,471.17.

The projected upper bound is: 1,504.69.

The projected lower bound is: 1,441.53.

The projected closing price is: 1,473.11.

Candlesticks

A white body occurred (because prices closed higher 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 27 white candles and 23 black candles for a net of 4 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 white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.

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 83.5326. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 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 45.78. 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 60 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 -12. This is not a topping or bottoming area. The last signal was a buy 5 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 1.305 at 1,473.586. Volume was 8,900% above average (trending) and Bollinger Bands were 4% wider than normal.

Open     High      Low     Close     Volume___
1,472.2621,478.8001,465.5601,473.586 90,392
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 1,465.64 1,491.20 1,396.36
Volatility: 11 13 15
Volume: 9,039 1,808 452

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 5.5% 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 9 periods.

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