Gold 1 OZ (XAU=X) show signs of strength
Gold markets have initially pulled back a bit during the week but showed enough support underneath the turn things around and show signs of strength. The $1600 level above is a target that should continue to be a bit of a target, and perhaps barrier at the same time. If the market can break above the $1600 level on a daily close, then I believe gold will continue to go much higher. At this point, I like buying dips to take advantage of value as it continues to offer value every time it pulls back. The central banks around the world continue to show loose monetary policy, which helps boost precious metals in general.
At this point, the US dollar is strong, so that might be one of the things that has slowed the move to the upside, but clearly it’s very likely to be one that you can’t sell, and I believe that the $1500 level underneath is the absolute “floor” and therefore I don’t believe that the market can break below there without some type of major change. The 50 week EMA is racing to that area and it should show support as well. Unless something changes with the coronavirus and monetary policy around the world, I find it very difficult to imagine that gold will sell off for any significant amount of time. If we do close above the $1600 level, it’s likely that the market will then go looking towards the $1750 level based upon longer-term chart analysis and the fact that we had recently broken out of a bullish flag that measures for that same move.
Overall, the bias in prices is: Upwards.
The projected upper bound is: 1,610.04.
The projected lower bound is: 1,556.31.
The projected closing price is: 1,583.18.
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 32 white candles and 17 black candles for a net of 15 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 90.7402. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 14 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 59.62. 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 14 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 0 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 sell 10 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAU= closed down -3.520 at 1,580.800. Volume was -0% below average (neutral) and Bollinger Bands were 33% narrower than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 1,569.10 1,538.73 1,467.48
Volatility: 12 11 15
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.
PREC.M.XAU= is currently 7.7% 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 into XAU= (bullish). Our trend forecasting oscillators are currently bearish on XAU= and have had this outlook for the last 5 periods.