Gold 1 OZ (XAU=X) prices continued to show a lack of direction
Gold prices continued to show a lack of direction during trading on Tuesday, extending the lackluster performance seen in the previous session.
After slipping $0.70 to $1,480.50 an ounce on Monday, gold for February delivery inched up $0.10 to $1,480.60 an ounce.
The choppy trading came as traders seemed reluctant to make any significant moves as they wait to determine the next catalyst that will drive the markets.
With a phase one U.S.-China trade deal nearing the finishing line and the Federal Reserve likely on hold for the foreseeable future, investors will need to find new sources of inspiration.
A separate report from the Fed showed U.S. industrial production rebounded by more than expected in the month of November.
The report said industrial production jumped by 1.1 percent in November after tumbling by a revised 0.9 percent in October.
Economists had expected industrial production to climb by 0.8 percent compared to the 0.8 percent slump originally reported for the previous month.
Overall, the bias in prices is: Sideways.
The projected upper bound is: 1,499.63.
The projected lower bound is: 1,449.65.
The projected closing price is: 1,474.64.
A black body occurred (because prices closed lower 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 25 white candles and 25 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 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 58.3144. This is not an overbought or oversold reading. The last signal was a buy 4 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 52.55. 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 79 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 81. This is not a topping or bottoming area. The last signal was a sell 7 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 12 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAU= closed down -0.764 at 1,475.237. Volume was 8,900% above average (trending) and Bollinger Bands were 55% narrower 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: 1,470.59 1,478.16 1,411.09
Volatility: 9 11 14
Volume: 8,364 1,673 418
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 4.5% 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 1 periods.
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