Turning to the daily chart, we see that gold price is close to forming a double bottom pattern at $1,847. Also, the price is forming a bearish descending triangle pattern that is shown in red. It is also slightly below the 25-day moving average.
Therefore, in the next few days, the metal will likely remain inside this triangle pattern before breaking out lower, possibly below $1,800.
On the other hand, a move above the upper line of the triangle will invalidate the bearish thesis.
Overall, the bias in prices is: Downwards.
By the way, prices are vulnerable to a correction towards 1,892.39.
The projected upper bound is: 1,895.02.
The projected lower bound is: 1,766.42.
The projected closing price is: 1,830.72.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black 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 16.6242. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a buy 7 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 36.77. 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 75 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 -154.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 2 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 9 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAU= closed down -2.680 at 1,833.170. Volume was 8,900% above average (trending) and Bollinger Bands were 16% narrower than normal.
Open High Low Close Volume 1,836.260 1,838.526 1,830.300 1,833.170 4,624
Technical Outlook Short Term: Oversold Intermediate-Term: Bearish Long Term: Bullish
Moving Averages: 10-period 50-period 200-period Close: 1,867.39 1,894.65 1,796.41 Volatility: 13 22 24 Volume: 462 92 23
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 2.0% above its 200-period moving average and is in an downward trend. Volatility is high 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 bearish on XAU= and have had this outlook for the last 5 periods.