Gold 1 OZ (XAU=X) new trading range of $1,270-$1,290

Gold 1 OZ (XAU=X) new trading range of $1,270-$1,290

Gold 1 OZ (XAU=X) new trading range of $1,270-$1,290

Gold appears to have found a new trading range, which is $1,270-$1,290. The range looks solid as gold prepares to make its next big move. Gold’s next move is still undetermined as it rallies to the top and breaks to the bottom, with support and resistance both holding tight and making the war between the bulls and the bears a draw.

Eventually this pattern, known as congestion or the greatest time of uncertainty, will change and either the bulls or the bears will take charge. From a fundamental side, with the global economy failing and equities getting ready to break down, the bulls could take hold and break out to the upside, taking gold much higher.

On the other side of the gold coin, the trouble in equities didn’t just start today, and gold has had trouble breaking out to the upside, which means the bears could take over and break the metal, continuing the down move. Until further notice and all the reason’s gold should rally, it hasn’t. The move is lower until the pattern changes; for now, sell the rallies.

Overall, the bias in prices is: Sideways.

The projected upper bound is: 1,297.72.

The projected lower bound is: 1,260.06.

The projected closing price is: 1,278.89.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 3 white candles and 7 black candles for a net of 4 black candles. During the past 50 bars, there have been 21 white candles and 29 black candles for a net of 8 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 42.8334. This is not an overbought or oversold reading. The last signal was a sell 2 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 46.42. 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 69 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 -44. 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 sell 7 period(s) ago.

Rex Takasugi – TD Profile

PREC.M.XAU= closed up 0.345 at 1,279.545. Volume was 8,900% above average (trending) and Bollinger Bands were 38% narrower than normal.

Open High Low Close Volume___
1,279.3601,279.9401,279.3101,279.545 75

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

Moving Averages: 10-period 50-period 200-period
Close: 1,279.30 1,287.35 1,260.02
Volatility: 7 9 11
Volume: 8 2 0

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 1.5% above its 200-period moving average and is in an upward trend. Volatility is low as compared to the average volatility over the last 10 periods. 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 12 periods.

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