The precious metal has moved into a holding pattern, staying afloat above 1900 and 1911.50. This marks the key support/resistance level for gold over the past few months.
Price action has formed an ascending triangle pattern. However, this is yet to be validated.
If the declines from Friday can post a reversal, we might see an upside breakout. This will be subject to price breaking above the 1911.50 region.
This will give the minimum upside to the 1937.50 region at the very least.
Alternately, if price continues to decline, we could see the ascending triangle being invalidated.
This might potentially open gold prices to the downside risk.
Overall, the bias in prices is: Sideways.
The projected upper bound is: 1,985.30.
The projected lower bound is: 1,826.87.
The projected closing price is: 1,906.08.
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 27 white candles and 23 black candles for a net of 4 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 47.7535. This is not an overbought or oversold reading. The last signal was a sell 9 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 50.07. 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 49 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 38. This is not a topping or bottoming area. The last signal was a sell 4 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 buy 10 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAU= closed up 9.490 at 1,908.460. Volume was 8,900% above average (trending) and Bollinger Bands were 49% narrower than normal.
Open High Low Close Volume 1,899.290 1,910.570 1,896.710 1,908.460 19,362
Technical Outlook Short Term: Neutral Intermediate Term: Bearish Long Term: Bullish
Moving Averages: 10-period 50-period 200-period Close: 1,901.58 1,924.84 1,754.90 Volatility: 20 26 23 Volume: 1,936 387 97
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 8.8% above 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 39 periods.