Home Commodities Gold 1 OZ (XAU=X) rally takes price into a multi-year trendline

Gold 1 OZ (XAU=X) rally takes price into a multi-year trendline

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Gold 1 OZ (XAU=X) rally takes price into a multi-year trendline

The immediate gold price advance is vulnerable while below this slope – risk for exhaustion IF price fails a weekly close above 1351. From a trading standpoint, a good place to reduce long-exposure / raise protective stops. Ultimately, we’ll be on the lookout for more favourable entries on a pullback while above 1302 targeting a topside breach of 2016 highs.

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 1,306.92.

The projected upper bound is: 1,363.24.

The projected lower bound is: 1,321.39.

The projected closing price is: 1,342.31.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 8 white candles and 2 black candles for a net of 6 white candles. During the past 50 bars, there have been 25 white candles and 25 black candles.

A long upper shadow occurred. This is typically a bearish signal (particularly when it occurs near a high price level, at resistance level, or when the security is overbought).

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 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 60.7264. This is not an overbought or oversold reading. The last signal was a sell 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 70.48. 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 4 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 94. This is not a topping or bottoming area. The last signal was a sell 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 buy 11 period(s) ago.

Rex Takasugi – TD Profile

PREC.M.XAU= closed down -0.620 at 1,341.330. Volume was -0% below average (neutral) and Bollinger Bands were 111% wider than normal.

Open High Low Close Volume___
1,341.3001,358.0381,337.5801,341.330 0

Technical Outlook
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish

Moving Averages: 10-period 50-period 200-period
Close: 1,332.54 1,293.88 1,267.26
Volatility: 11 10 11
Volume: 0 0 0

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 5.8% above its 200-period moving average and is in an upward trend. Volatility is low 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 23 periods. Our momentum oscillator is currently indicating that XAU= is currently in an overbought condition.

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