Gold 1 OZ (XAU=X) seeing some profit taking after hitting a 4-week high
Gold remain under pressure Tuesday even as the U.S. housing sector continues to drag on economic growth.
The Commerce Department’s latest report showed that U.S. housing starts fell 8.7% in to a seasonally adjusted annual rate of 1.162 million units in February. Consensus forecasts called for starts to be around 1.22 million.
The report noted that for the year construction in the housing sector is down nearly 10% since February 2018.
Meanwhile, the Commerce Department said the tally of building permits – important as an indicator of future construction activity – fell by 1.6% last month to an annualized rate of 1.296 million. Economists were expecting to see an increase to 1.32 million.
Building permits, are down 2% compared to last year.
The data hasn’t had much of an impact on gold prices, which is seeing some profit taking after hitting a 4-week high Monday. April gold futures last traded at $1,316.20, down 0.48% on the day.
Overall, the bias in prices is: Upwards.
The projected upper bound is: 1,340.19.
The projected lower bound is: 1,294.95.
The projected closing price is: 1,317.57.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 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 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 77.2699. This is not an overbought or oversold reading. The last signal was a sell 8 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 56.51. 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 23 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 119.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 12 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 7 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAU= closed down -4.786 at 1,317.014. Volume was 8,900% above average (trending) and Bollinger Bands were 9% narrower than normal.
Open High Low Close Volume___
Short Term: Overbought
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 1,308.93 1,307.01 1,247.32
Volatility: 9 11 11
Volume: 1,864 373 93
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 5.6% above its 200-period moving average and is in an downward trend. Volatility is high 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 bearish on XAU= and have had this outlook for the last 16 periods.