Gold 1 OZ (XAU=X) Target $3000
Conflicting influences from the US Dollar and benchmark Treasury bond yields pinned gold prices in place yesterday. A volatile response to signs of escalation in the US-China trade war traced out inverse whipsaw price swings that put the metal’s defining anti-fiat and non-yielding attributes in conflict.
All the same, the mood still seems to be uneasy. Shell-shocked investors are on the lookout for headline risk, troubled by confirmation of a looming tariff hike from the White House but heartened by indications that a Chinese delegation set to arrive in Washington this week will still make the trip.
How this story develops from here may prove pivotal, leaving traders reluctant to commit to a directional bias until fresh clues emerge. Price action may be muted in the interim. Updated economic forecasts from the EU Commission are likely to deliver downgrades, which might make for a risk-off lean.
Overall, the bias in prices is: Sideways.
By the way, prices are vulnerable to a correction towards 1,287.85.
The projected upper bound is: 1,301.52.
The projected lower bound is: 1,259.46.
The projected closing price is: 1,280.49.
A white body occurred (because prices closed higher 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 24 white candles and 26 black candles for a net of 2 black candles.
A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.
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 67.7004. This is not an overbought or oversold reading. The last signal was a buy 10 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 47.33. 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 52 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 83. This is not a topping or bottoming area. The last signal was a buy 2 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 6 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAU= closed up 1.325 at 1,281.400. Volume was 8,900% above average (trending) and Bollinger Bands were 21% 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: 1,278.77 1,293.29 1,253.09
Volatility: 8 10 11
Volume: 492 98 25
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 2.3% above its 200-period moving average and is in an downward 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 into XAU= (bullish). Our trend forecasting oscillators are currently bearish on XAU= and have had this outlook for the last 27 periods.
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