Gold 1 OZ (XAU=X) trader and investor risk appetite is more upbeat
Gold prices are moderately down and hit a two-week low in midday U.S. trading Tuesday. So far this week, trader and investor risk appetite is more upbeat, which is bearish for the safe-haven gold and silver markets. The near-term technical posture has deteriorated for gold and silver recently, suggesting more downside price pressure in the near term, including new lows for the year in both metals. June gold futures were last down $3.90 an ounce at $1,273.40. July Comex silver prices hit a 5.5-month low today and were last down $0.015 at $14.43 an ounce.
For the time being, the world marketplace has put the U.S.-China trade war and its negative ramifications on world economies on the back burner. U.S. and world stock markets have moved mostly higher so far this week.
Technically, June gold futures prices closed near mid-range. The bears now have the overall near-term technical advantage and have regained downside momentum to suggest new near-term lows in the offing. Gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,300.00.
Bears’ next near-term downside price breakout objective is pushing prices below solid technical support at the May low of $1,267.30. First resistance is seen at this week’s high of $1,278.80 and then at $1,287.00. First support is seen at today’s low of $1,269.00 and then at $1,267.30.
Overall, the bias in prices is: Downwards.
The projected upper bound is: 1,294.28.
The projected lower bound is: 1,254.40.
The projected closing price is: 1,274.34.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 3 white candles and 7 black candles for a net of 4 black candles. During the past 50 bars, there have been 24 white candles and 26 black candles for a net of 2 black candles.
Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.
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 13.9863. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a buy 20 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 41.93. 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 62 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 -103.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 3 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 sell 0 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAU= closed down -2.770 at 1,274.725. Volume was 8,900% above average (trending) and Bollinger Bands were 33% narrower than normal.
Open High Low Close Volume___
Short Term: Oversold
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 1,285.85 1,290.68 1,256.73
Volatility: 10 10 11
Volume: 1,962 392 98
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 1.4% above its 200-period moving average and is in an upward trend. Volatility is 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 5 periods.