My business trip was extended and kept me away from my reuters charts for almost 3 weeks.
However, during the time that I was away, gold performed very well indeed with an impressive run of almost $140.
In the daily charts, the short term directional indicators are in the overbought zone and in danger of criss-crossing back lower if the upward momentum is not maintained.
As it is, it is scraping the ceiling right now.
The medium term trending indicators looks to be slightly overdone as it is over and above the previous peak by a wide margin.
The long term directional indicators are holding its own nicely and even if market were unable to test higher, it should hold it above 1200 for a prolonged period.
The momentum/volatility indicators found its second wind and poked much higher today but the real danger of deflating just as quickly if the rally was running on air.
In the weekly charts the short term directional indicators have only just pushed into the overbought zone and if there is still demand, might push higher for at least a week more.
The medium term trending indicator is almost at a level when gold was testing 1300 last year so maybe running out of steam soon.
The long term directional indicators had only recently confirmed cutting up so maybe in the longer term we might see gold trying higher but it is in need of a retracement to avoid being over heated and that will require a long time for the indicators to re-sychronise before a new direction is found.
Just remember how long it took for gold, after it's drop to the lows, to finally re-find a new direction, which took about 1 year.
The momentum/volatility indicators are close to the 50% mark and the next news could either push it higher or, bring some temporary relief.
Interim supports are at 1235, 1224.50 & 1216 with minor supports at 1228, 1218.40 & 1212.60.
Interim resistances are at 1243.20, 1245 & 1248 with minor resistances at 1242, 1251.70 & 1268.30.
The daily/weekly trend changer points are at 1165/1052.55.
Get Gold Trading Chat (Android), excerpts from there
However, during the time that I was away, gold performed very well indeed with an impressive run of almost $140.
In the daily charts, the short term directional indicators are in the overbought zone and in danger of criss-crossing back lower if the upward momentum is not maintained.
As it is, it is scraping the ceiling right now.
The medium term trending indicators looks to be slightly overdone as it is over and above the previous peak by a wide margin.
The long term directional indicators are holding its own nicely and even if market were unable to test higher, it should hold it above 1200 for a prolonged period.
The momentum/volatility indicators found its second wind and poked much higher today but the real danger of deflating just as quickly if the rally was running on air.
In the weekly charts the short term directional indicators have only just pushed into the overbought zone and if there is still demand, might push higher for at least a week more.
The medium term trending indicator is almost at a level when gold was testing 1300 last year so maybe running out of steam soon.
The long term directional indicators had only recently confirmed cutting up so maybe in the longer term we might see gold trying higher but it is in need of a retracement to avoid being over heated and that will require a long time for the indicators to re-sychronise before a new direction is found.
Just remember how long it took for gold, after it's drop to the lows, to finally re-find a new direction, which took about 1 year.
The momentum/volatility indicators are close to the 50% mark and the next news could either push it higher or, bring some temporary relief.
Interim supports are at 1235, 1224.50 & 1216 with minor supports at 1228, 1218.40 & 1212.60.
Interim resistances are at 1243.20, 1245 & 1248 with minor resistances at 1242, 1251.70 & 1268.30.
The daily/weekly trend changer points are at 1165/1052.55.
Get Gold Trading Chat (Android), excerpts from there
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