Gold has reacted positively to one bad news after another and propped it a lot higher than when I had left off.
It has gone up a far bit and if we were taking only an initial glance, we might be tempted to just jump in and go along with the current trend.
In the daily charts, the short term directional indicators are positively slanted higher and should be extending into the overbought zone by Wednesday.
So the prices must definitely run higher (1300) or it's doomed to collapse upon itself should it fail.
The medium term trending indicator has cut very nicely higher but could mutate into a bull trap if the move is not well managed and driven a lot higher.
A divergence could be confirmed and that spells doom, at least in the short term and we have to see the severity of the retracement in order to see if it can turn into a medium term retracement.
The long term directional indicators went back into a positive bias last Tuesday and looks like it may continue for 10 days more, lingering to the higher side.
The momentum/volatility indicators have not run amok despite gold pressing a lot higher, it's only around the 50% mark with plenty of maneuverable room either way.
Interim supports are at 1261, 1247.50 & 1242.50 with minor supports at 1256.50,1239.30 & 1228.
Interim resistances are at 1269, 1273.50 & 1280 with minor resistances at 1272.70, 1277.30 & 1291.40.
The daily/weekly trend changer points are at 1205.05/1103.15.
Get Gold Trading Chat (Android), excerpts from there
It has gone up a far bit and if we were taking only an initial glance, we might be tempted to just jump in and go along with the current trend.
In the daily charts, the short term directional indicators are positively slanted higher and should be extending into the overbought zone by Wednesday.
So the prices must definitely run higher (1300) or it's doomed to collapse upon itself should it fail.
The medium term trending indicator has cut very nicely higher but could mutate into a bull trap if the move is not well managed and driven a lot higher.
A divergence could be confirmed and that spells doom, at least in the short term and we have to see the severity of the retracement in order to see if it can turn into a medium term retracement.
The long term directional indicators went back into a positive bias last Tuesday and looks like it may continue for 10 days more, lingering to the higher side.
The momentum/volatility indicators have not run amok despite gold pressing a lot higher, it's only around the 50% mark with plenty of maneuverable room either way.
Interim supports are at 1261, 1247.50 & 1242.50 with minor supports at 1256.50,1239.30 & 1228.
Interim resistances are at 1269, 1273.50 & 1280 with minor resistances at 1272.70, 1277.30 & 1291.40.
The daily/weekly trend changer points are at 1205.05/1103.15.
Get Gold Trading Chat (Android), excerpts from there
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