Gold 1 OZ (XAU=X) pushing higher to fresh six-year highs
The precious metal continued to push higher as it rallied to fresh six-year highs. Gold gained over 1.5% on Monday as it comfortably closed past the $1400 level an ounce.
The gains in gold prices come with a mix of a weaker USD and a call from President Trump for the Fed to cut rates. The US-Iran tensions also contributed to the solid gains.
The current bullish momentum in gold prices could see the precious metal rising to the 1450 handle which marks the next key level of interest. Price is now posting gains for the sixth consecutive week. The main resistance level is seen at 1470 handle. To the downside, the latest support is at 1404.50 which could stall any short term correction in prices.
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 1,334.80.
The projected upper bound is: 1,461.24.
The projected lower bound is: 1,411.25.
The projected closing price is: 1,436.24.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 9 white candles and 1 black candles for a net of 8 white candles. During the past 50 bars, there have been 28 white candles and 22 black candles for a net of 6 white candles.
Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.
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 92.5908. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 11 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 87.99. This is where it usually tops. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 6 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 178.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 11 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 18 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAU= closed up 14.181 at 1,433.331. Volume was 8,900% above average (trending) and Bollinger Bands were 183% wider than normal.
Open High Low Close Volume___
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 1,370.06 1,306.16 1,273.74
Volatility: 12 12 11
Volume: 894 179 45
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 12.5% above its 200-period moving average and is in an upward trend. Volatility is high 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 30 periods. Our momentum oscillator is currently indicating that XAU= is currently in an overbought condition.
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