Gold 1 OZ (XAU=X) Risk Appetite Picks Up

Gold 1 OZ (XAU=X) Risk Appetite Picks Up

Gold 1 OZ (XAU=X) Risk Appetite Picks Up

Gold and silver prices are weaker in early-afternoon U.S. trading Tuesday, as higher world stock markets have traders and investors in upbeat moods early this week. A higher U.S. dollar index today also worked against the precious metals market bulls. February gold futures were last down $3.60 an ounce at $1,287.70. March Comex silver was down $0.091 at $15.595 an ounce.

Technically, February gold futures bulls still have the overall near-term technical advantage. A two-month-old price uptrend is still in place on the daily bar chart.

The recent sideways pause is not bearish. Gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,300.00. Bears’ next near-term downside price breakout objective is pushing prices below solid technical support at $1,260.00. First resistance is seen at this week’s high of $1,296.60 and then at the January high of $1,300.40. First support is seen at today’s low of $1,286.50 and then at last week’s low of $1,280.20. 

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 1,253.14.

The projected upper bound is: 1,308.95.

The projected lower bound is: 1,272.48.

The projected closing price is: 1,290.71.

Candlesticks

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 27 white candles and 23 black candles for a net of 4 white 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 58.5376. This is not an overbought or oversold reading. The last signal was a sell 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 64.55. 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 3 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 69. This is not a topping or bottoming area. The last signal was a sell 7 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 3 period(s) ago.

Rex Takasugi – TD Profile

PREC.M.XAU= closed down -2.150 at 1,289.540. Volume was 8,900% above average (trending) and Bollinger Bands were 38% wider than normal.

Open High Low Close Volume___
1,291.6901,294.6301,286.3001,289.540 16,453

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

Moving Averages: 10-period 50-period 200-period
Close: 1,288.48 1,247.11 1,248.13
Volatility: 8 9 11
Volume: 1,645 329 82

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% 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 out of XAU= (bearish). Our trend forecasting oscillators are currently bullish on XAU= and have had this outlook for the last 27 periods.

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