Gold 1 OZ (XAU=X) plenty of support near the $1550 level
Gold markets pulled back a bit during the trading session on Thursday, as we continue to see plenty of support near the $1550 level. At this point, the market looks likely to see value hunters come back in every time we dip.
Gold markets went back and forth during the trading session on Thursday again as we are trying to figure out where to go next. Ultimately, this market should go looking towards the $1600 level eventually, and at this point all we really need is some type of headline to cause panic, something that seems to be a theme until recently. Furthermore, the US dollar losing strength could also help gold, and therefore push towards that level.
If the market was to break above the $1600 level, I believe that we then go looking towards the $1650 level next, and then the $1800 level longer-term. Pullbacks at this point should find plenty supported not only at the $1550 level, but also the 50 day EMA underneath. This is a market that is also forming a bit of a bullish flag, so I do think that we are getting ready to see the next leg higher. It won’t be an easy move but given enough time we should find reasons to continue the longer-term uptrend. All things being equal, I am a buyer of dips and I believe that you can build a larger core position at this point.
If the market were to drop down below the 50 day EMA, I would have to rethink a lot of things but right now it certainly looks as if we have plenty of momentum to continue going higher given enough time. I am bullish of gold and will remain so for the foreseeable future.
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 1,515.10.
The projected upper bound is: 1,587.83.
The projected lower bound is: 1,541.54.
The projected closing price is: 1,564.68.
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 30 white candles and 19 black candles for a net of 11 white candles.
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.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 61.6205. 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 66.56. 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 8 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 29. This is not a topping or bottoming area. The last signal was a sell 10 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 6 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAU= closed up 4.225 at 1,562.845. Volume was 8,900% above average (trending) and Bollinger Bands were 20% wider than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 1,556.14 1,502.43 1,442.66
Volatility: 8 10 14
Volume: 7,429 1,486 371
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.
PREC.M.XAU= is currently 8.3% above its 200-period moving average and is in an upward 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 bullish on XAU= and have had this outlook for the last 28 periods.
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