Gold 1 OZ (XAU=X) Markets Stabilize A Bit

Gold 1 OZ (XAU=X) Markets Stabilize A Bit

Gold 1 OZ (XAU=X) Markets Stabilize A Bit

Gold markets rallied a bit during the trading session on Wednesday, breaking above the top of the hammer from the Tuesday session. By doing so, it shows that the market is still trying to break out to the upside but obviously we have a lot of noise above. The $1600 level is a bit of a “ceiling” for the market and should be looked at as such. Nonetheless, the gold market has been very bullish as of late, so this pullback is more than likely going to be looked at with a sense of welcome by the bullish traders out there.

The 50 day EMA under at the $1508 level of course offer support, but furthermore it’s the $1525 level offered support as well. The market will continue to be very noisy, and of course there are all lot of back-and-forth traders due to the idea of the global economy slowing down, but at the same time global tensions easing.

In other words, we are all over the place with risk sentiment but when you look at the technical analysis, if you use a little bit of artistic license, you can make a bit of an argument for a bullish flag right now, which would suggest a move towards the $1750 level. Granted, that’s going to take quite some time to get there but one has to feel that it’s only a matter of time before somebody somewhere does something stupid to jolt the markets. That’s been the pattern for several years now, so I’m still bullish longer term.

Technical Indicators

Overall, the bias in prices is: Upwards.

Note: this chart shows extraordinary price action to the upside.

By the way, prices are vulnerable to a correction towards 1,513.37.

The projected upper bound is: 1,577.08.

The projected lower bound is: 1,529.54.

The projected closing price is: 1,553.31.

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 29 white candles and 20 black candles for a net of 9 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 36.0366. This is not an overbought or oversold reading. The last signal was a buy 1 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 63.39. 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 3 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 28. This is not a topping or bottoming area. The last signal was a sell 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 sell 1 period(s) ago.

Rex Takasugi – TD Profile

PREC.M.XAU= closed down -4.299 at 1,551.636. Volume was 8,900% above average (trending) and Bollinger Bands were 83% wider than normal.

Open     High      Low     Close     Volume___
1,555.9251,557.8901,547.6001,551.636 71,695
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 1,556.29 1,492.57 1,435.77
Volatility: 15 10 14
Volume: 7,170 1,434 358

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 8.1% 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 23 periods.

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)