Gold 1 OZ (XAU=X) technical buying gives support

Gold 1 OZ (XAU=X) technical buying gives support

Gold 1 OZ (XAU=X) technical buying gives support

Gold prices were largely unchanged on Wednesday, as investors awaited more clarity on the Brexit and the U.S.-China trade war, while some technical buying provided modest support to the bullion.

Spot gold was up 0.1% at $1,489.31 per ounce as of 0622 GMT. U.S. gold futures rose 0.3% to $1,492.40 per ounce.

“Gold has been rising modestly on technical buying since it fell to the $1,470 level,” said Vandana Bharti, assistant vice-president of commodity research at SMC Comtrade.

“What we see today is a continuation of that but uncertainty over Brexit is also providing some support.”

Asian shares and U.S. stock futures took a hit after British lawmakers rejected their government’s proposed timetable for passing legislation to ratify its deal to exit the European Union (EU).

Technical Indicators

Overall, the bias in prices is: Upwards.

The projected upper bound is: 1,539.32.

The projected lower bound is: 1,466.14.

The projected closing price is: 1,502.73.

Candlesticks

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.

Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.

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 74.3578. This is not an overbought or oversold reading. The last signal was a buy 16 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 53.85. 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 41 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 67. This is not a topping or bottoming area. The last signal was a buy 16 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 0 period(s) ago.

Rex Takasugi – TD Profile

PREC.M.XAU= closed up 11.275 at 1,503.125. Volume was 8,900% above average (trending) and Bollinger Bands were 58% narrower than normal.

Open     High      Low     Close     Volume___
1,491.9011,503.8111,487.6201,503.125 66,711
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 1,490.08 1,504.94 1,379.39
Volatility: 8 15 14
Volume: 6,671 1,334 334

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 9.0% above its 200-period moving average and is in an downward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. 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 31 periods. Our momentum oscillator has set a new 14-period high while the security price has not. This is a bullish divergence.

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