GOLD 1 OZ (XAU=X) Prices Firmer Amid Weak U.S. Stock Market

GOLD 1 OZ (XAU=X) Prices Firmer Amid Weak U.S. Stock Market

GOLD 1 OZ (XAU=X) Prices Firmer Amid Weak U.S. Stock Market

Gold bears have the overall near-term technical advantage. Bulls’ next upside price objective is to produce a close in December futures above solid resistance at the November high of $1,239.30. Bears’ next near-term downside price breakout objective is pushing prices below solid technical support at the September low of $1,184.30. First resistance is seen at the November high of $1,239.30 and then at the October high of $1,246.00. First support is seen at today’s low of $1,221.60 and then at Monday’s low of $1,218.50.

Overall, the bias in prices is: Sideways.

The projected upper bound is: 1,245.39.

The projected lower bound is: 1,197.57.

The projected closing price is: 1,221.48.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 25 white candles and 25 black candles.

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 85.6495. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 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 52.44. 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 67 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 26. This is not a topping or bottoming area. The last signal was a buy 4 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 sell 14 period(s) ago.

Rex Takasugi – TD Profile

PREC.M.XAU= closed down -2.970 at 1,221.010. Volume was 8,900% above average (trending) and Bollinger Bands were 5% narrower than normal.

Open High Low Close Volume___
1,223.9801,228.7901,219.2901,221.010 18,369

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

Moving Averages: 10-period 50-period 200-period
Close: 1,215.11 1,211.79 1,262.53
Volatility: 11 13 12
Volume: 1,837 367 92

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 3.3% 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 5 periods.

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