GOLD 1 OZ (XAU=X) Opportunities Exist in the Gold Sector

GOLD 1 OZ (XAU=X) Opportunities Exist in the Gold Sector

GOLD 1 OZ (XAU=X) Opportunities Exist in the Gold Sector

Despite the multitude of worries in the world, the gold price in US dollar terms is trading about 1.5 per cent below its level of a year ago and is about 8 per cent off its January peak.

US inflation, gold’s traditional friend, remains benign although President Donald Trumps tariff barriers might change that.

But for Australian gold producers the good times continue to roll. The $A-denominated price is up about 5 per cent over the past 12 months.

Most of the smaller gold plays on the ASX are trading at a discount. “It’s time for investors … to look down the curve for value in the Australian gold space.

Investment options include mid-tier extant producers such as Saracen Gold (SAR, $2), Ramelius Resources (RMS, 56c) and Silver Lake Resources (SLR, 55c).

Heffx Buy Rating for Silver Lake Resources (SLR, 55c).

Overall, the bias in prices is: Downwards.

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

By the way, prices are vulnerable to a correction towards 1,264.77.

The projected upper bound is: 1,238.11.

The projected lower bound is: 1,201.65.

The projected closing price is: 1,219.88.

Candlesticks

A black body occurred (because prices closed lower 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 20 white candles and 30 black candles for a net of 10 black 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.

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 30.6870. This is not an overbought or oversold reading. The last signal was a buy 6 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 33.01. 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 6 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 -79. 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 2 period(s) ago.

Rex Takasugi – TD Profile

PREC.M.XAU= closed down -1.670 at 1,221.300. Volume was -0% below average (neutral) and Bollinger Bands were 17% wider than normal.

Open High Low Close Volume___
1,222.5601,225.0901,218.5601,221.300 0

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

Moving Averages: 10-period 50-period 200-period
Close: 1,225.33 1,265.17 1,298.24
Volatility: 10 9 11
Volume: 0 0 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 5.9% below 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 29 periods. The security price has set a new 14-period low while our momentum oscillator has not. This is a bullish divergence.

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.

You must be logged in to post comments :  
CONNECT WITH