Gold Prices Carve Fresh Bearish Sequence After Posting July-High
Gold fell initially to open the day on Tuesday, reaching down to the psychologically important $1250 level. That’s an area that has been important more than once, and of course has a certain amount of psychological importance to it. If we can break above the $1260 level, at that point I think that the market will be ready to go much higher.
Gold markets initially fell during the trading session on Tuesday, reaching down to the $1250 level, an area that has been important several times. I believe that the market will eventually find buyers to push higher, but I would also point out that we had recently broke down below a significant uptrend line. That being said, I’m not as confident about gold in the short term as I am the longer-term. I do believe that longer-term we will go much higher, but right now it’s likely that we will continue to see a lot of volatility. This makes sense, because the Forex markets are all over the place, and of course the US dollar has been a major driver of where gold goes.
If we do break down below the lows of the day, then I think we go looking towards $1240 level, and could go as low as the $1200 level underneath, which I think is massive support. Right now though, it looks like we are trying to build some type of base, so it might take some time to eventually get a definable trend. Currently, there are so many different moving pieces with global risk appetite that I think Gold will continue to be a short-term traders market overall, with about every $10 offering support and resistance, setting up a nice opportunity for range bound scalpers to get involved.
Overall, the bias in prices is: Downwards.
By the way, prices are vulnerable to a correction towards 1,282.79.
The projected upper bound is: 1,259.62.
The projected lower bound is: 1,221.39.
The projected closing price is: 1,240.51.
A big black candle occurred. This is bearish, as prices closed significantly lower than they opened. If the candle appears when prices are “high,” it may be the first sign of a top. If it occurs when prices are confronting an overhead resistance area (e.g., a moving average, trendline, or price resistance level), the long black candle adds credibility to the resistance. Similarly, if the candle appears as prices break below a support area, the long black candle confirms the failure of the support area.
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 23 white candles and 27 black candles for a net of 4 black candles.
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 40.4188. This is not an overbought or oversold reading. The last signal was a buy 6 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 30.82. 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 buy 6 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 -109.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 6 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 4 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAU= closed down -13.470 at 1,241.760. Volume was -0% below average (neutral) and Bollinger Bands were 25% wider than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 1,251.62 1,284.98 1,301.83
Volatility: 11 9 11
Volume: 0 0 0
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 4.6% below its 200-period moving average and is in an downward trend. Volatility is 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 16 periods.
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