Gold 1 OZ (XAU=X) solid technical resistance $1,546.10

Gold 1 OZ (XAU=X) solid technical resistance $1,546.10

Gold 1 OZ (XAU=X) solid technical resistance $1,546.10

Technically, December gold futures prices closed near mid-range today. The bulls still have the solid overall near-term technical advantage. A 2.5-month-old uptrend is in place on the daily bar chart. There are still no significant, early chart clues to suggest a market top is close at hand.

Gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at the August high of $1,546.10. Bears’ next near-term downside price breakout objective is pushing prices below solid technical support at last week’s low of $1,488.90.

First resistance is seen at today’s high of $1,523.60 and then at $1,530.00. First support is seen at today’s low of $1,503.30 and then at $1,500.00.

Technical Indicators

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 1,420.42.

The projected upper bound is: 1,540.75.

The projected lower bound is: 1,457.72.

The projected closing price is: 1,499.23.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 5 white candles and 5 black 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 55.9620. 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 61.00. 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 1 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 39. 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 10 period(s) ago.

Rex Takasugi – TD Profile

PREC.M.XAU= closed down -17.880 at 1,495.870. Volume was 8,900% above average (trending) and Bollinger Bands were 111% wider than normal.

Open     High      Low     Close     Volume___
1,510.7001,512.6001,492.1001,495.870 32,194
Technical Outlook 
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 1,503.25 1,423.59 1,318.06
Volatility: 17 19 13
Volume: 3,219 644 161

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 13.5% 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 out of XAU= (bearish). Our trend forecasting oscillators are currently bullish on XAU= and have had this outlook for the last 12 periods.

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