Gold and silver futures prices are higher in early U.S. trading Monday. Support comes from a weaker U.S. dollar index to start the trading week. The charts remain overall friendly and that is also inviting some bulls to the buy side. December gold futures were last up $9.60 at $1,916.00 and December Comex silver was last up $0.555 at $24.95 an ounce.
Technically, the December gold futures bulls have the overall near-term technical advantage amid recent choppy and sideways trading. Bulls’ next upside price objective is to produce a close in December futures above solid resistance at the October high of $1,939.40.
Bears’ next near-term downside price objective is pushing futures prices below solid technical support at the September low of $1,851.00. First resistance is seen at $1,925.00 and then at $1,930.60. First support is seen at $1,900.00 and then at last week’s low of $1,885.00.
Overall, the bias in prices is: Sideways.
The projected upper bound is: 1,962.51.
The projected lower bound is: 1,837.69.
The projected closing price is: 1,900.10.
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 27 white candles and 23 black candles for a net of 4 white 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 44.1835. This is not an overbought or oversold reading. The last signal was a sell 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 48.07. 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 50 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 -22. This is not a topping or bottoming area. The last signal was a sell 5 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 11 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAU= closed down -3.950 at 1,900.320. Volume was 8,900% above average (trending) and Bollinger Bands were 49% narrower than normal.
Open High Low Close Volume 1,903.790 1,904.615 1,894.360 1,900.320 15,830
Technical Outlook Short Term: Neutral Intermediate Term: Bearish Long Term: Bullish
Moving Averages: 10-period 50-period 200-period Close: 1,903.48 1,924.54 1,756.65 Volatility: 16 21 23 Volume: 1,583 317 79
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 8.2% 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 out of XAU= (bearish). Our trend forecasting oscillators are currently bearish on XAU= and have had this outlook for the last 40 periods.