Gold 1 OZ (XAU=X) solid resistance at $1,550.00

Gold 1 OZ (XAU=X) solid resistance at $1,550.00

Gold 1 OZ (XAU=X) solid resistance at $1,550.00

Gold prices are higher in early U.S. trading Friday, as traders and investors are uneasy again, and looking to the safe-haven metals for cover. December gold futures were last up $3.70 an ounce at 1,513.30. September Comex silver prices were last up $0.059 at $16.995 an ounce.

Technically, the gold bulls have the solid overall near-term technical advantage. A 10-week-old uptrend is in place on the daily bar chart. Bulls’ next upside price objective is to produce a close in October futures above solid resistance at $1,550.00.

Bears’ next near-term downside price breakout objective is pushing December futures prices below solid technical support at $1,467.00. First resistance is seen at this week’s high of $1,522.70 and then at $1,525.00. First support is seen at $1,500.00 and then at $1,490.00. 

Technical Indictors

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 1,391.73.

The projected upper bound is: 1,541.02.

The projected lower bound is: 1,460.32.

The projected closing price is: 1,500.67.

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 29 white candles and 21 black candles for a net of 8 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 87.7033. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 15 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 70.54. 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 26 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 133.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 14 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 4 period(s) ago.

Rex Takasugi – TD Profile

PREC.M.XAU= closed down -3.160 at 1,496.840. Volume was -0% below average (neutral) and Bollinger Bands were 75% wider than normal.

Open     High      Low     Close     Volume___
1,501.0001,508.0001,494.2201,496.840 0
Technical Outlook 
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 1,459.15 1,402.01 1,309.62
Volatility: 19 18 13
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 14.3% 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 6 periods. Our momentum oscillator is currently indicating that XAU= is currently in an overbought condition.

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