Just a quick update for today due to the lateness of the day.
In the daily charts, the short term directional indicators are wavering due to the giant move yesterday as it briefly grazed 1260 before collapsing as quickly and closing about 1.3% off the highs.
The indicators have actually cut and may exert undue pressure and a natural resistance for new moves higher, unless a new trigger is found.
That is, in the interim, a retracement is likely in the offing.
The medium term trending indicators had been running up so much that it is out of sync to the current levels as it's still northwards pointing and not slowing down despite the lacklustre closing of yesterday.
The long term directional indicators are similarly out of sync.
However, it requires gold to crash to 1180 today and the signal will be snuffed out and the chance of that happening is too remote.
So, gold will likely to be dallying for some more time, struggling to keep nearer to the higher end of the recent ranges and after sufficient time has passed with no new triggers, it should weigh upon itself and drift back lower to at least 1200 initially.
Optimum time frame for that to happen will be at least 2 weeks time.
The momentum/volatility indicators might have met its match and if we close too far away from recent highs, the momentum will be lost quickly and gold will lose its footing equally quickly as well.
It is crucial for gold to close above 1250 for the week to at least keep it looking "fresher" for a longer period.
Interim supports are at 1230.50, 1222.50 & 1197 with minor supports at 1228, 1218.40 & 1212.60.
Interim resistances are at 1258, 1260 & 1266 with minor resistances at 1240.70, 1251.70 & 1268.30.
The daily/weekly trend changer points are at 1180.90/1052.55.
Get Gold Trading Chat (Android), excerpts from there
In the daily charts, the short term directional indicators are wavering due to the giant move yesterday as it briefly grazed 1260 before collapsing as quickly and closing about 1.3% off the highs.
The indicators have actually cut and may exert undue pressure and a natural resistance for new moves higher, unless a new trigger is found.
That is, in the interim, a retracement is likely in the offing.
The medium term trending indicators had been running up so much that it is out of sync to the current levels as it's still northwards pointing and not slowing down despite the lacklustre closing of yesterday.
The long term directional indicators are similarly out of sync.
However, it requires gold to crash to 1180 today and the signal will be snuffed out and the chance of that happening is too remote.
So, gold will likely to be dallying for some more time, struggling to keep nearer to the higher end of the recent ranges and after sufficient time has passed with no new triggers, it should weigh upon itself and drift back lower to at least 1200 initially.
Optimum time frame for that to happen will be at least 2 weeks time.
The momentum/volatility indicators might have met its match and if we close too far away from recent highs, the momentum will be lost quickly and gold will lose its footing equally quickly as well.
It is crucial for gold to close above 1250 for the week to at least keep it looking "fresher" for a longer period.
Interim supports are at 1230.50, 1222.50 & 1197 with minor supports at 1228, 1218.40 & 1212.60.
Interim resistances are at 1258, 1260 & 1266 with minor resistances at 1240.70, 1251.70 & 1268.30.
The daily/weekly trend changer points are at 1180.90/1052.55.
Get Gold Trading Chat (Android), excerpts from there
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