GOLD 1 OZ (XAU=X) modest rally after the release of some U.S. economic data

GOLD 1 OZ (XAU=X) modest rally after the release of some U.S. economic data

GOLD 1 OZ (XAU=X) modest rally after the release of some U.S. economic data

Gold prices are posting a modest rally after the release of some U.S. economic data, including a very tame inflation report. Some more short covering in the futures markets (the buying back of previously sold, or short, positions) is featured in gold and silver today. December gold futures were last up $3.60 an ounce at $1,214.60. December Comex silver was last up $0.027 at $14.325 an ounce.

Technically, gold bears still have the firm overall near-term technical advantage. However, recent sideways price action favors the bulls and begins to suggest a market bottom is in place. Gold bulls’ next upside near-term price breakout objective is to produce a close in December futures above solid resistance at $1,220.70. Bears’ next near-term downside price breakout objective is pushing prices below solid technical support at the August low of $1,167.10. First resistance is seen at $1,220.70 and then at $1,225.00. First support is seen at today’s low of $1,208.60 and then at $1,200.00.

Overall, the bias in prices is: Downwards.

The projected upper bound is: 1,221.73.

The projected lower bound is: 1,177.40.

The projected closing price is: 1,199.57.

Candlesticks

A black body occurred (because prices closed lower 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 22 white candles and 28 black candles for a net of 6 black 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 63.2822. This is not an overbought or oversold reading. The last signal was a sell 15 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 48.67. 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 19 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 72. This is not a topping or bottoming area. The last signal was a buy 18 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 16 period(s) ago.

Rex Takasugi – TD Profile

PREC.M.XAU= closed down -4.750 at 1,200.700. Volume was 8,900% above average (trending) and Bollinger Bands were 44% narrower than normal.

Open High Low Close Volume___
1,206.5601,212.6501,199.6301,200.700 17,530

Technical Outlook
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 1,198.27 1,211.86 1,285.13
Volatility: 8 12 12
Volume: 1,753 351 88

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 6.6% below its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. Our volume indicators reflect very strong flows of volume into XAU= (bullish). Our trend forecasting oscillators are currently bullish on XAU= and have had this outlook for the last 9 periods.

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