In the daily charts, the short term directional indicators
have dribbled back to 50% mark.
It feels like a wastrel at work as gold didn’t
take advantage of the fact that the indicator was cascading right from the peak
to reap some good moves lower.
The medium term trending indicators have curved
nicely lower and just connecting to the parity line.
It will remain skittish,
maybe even coy as it attempts to try to effect a confirmation of a closing
below the parity line and indicate lower supports maybe attempted later on.
Anyway, it is apparent that a divergence has formed from the prior attempts at
the recent highs but what it makes or doesn’t make anything of it, will unfold
in the coming weeks.
The long term directional indicators have gone into
standby mode. So it is unlikely to see fresh cues for at least 2 more weeks.
The momentum/volatility indicators are disappointing as it has gone 2 rungs
lower.
So we may see gold stuck in
recent ranges for some more time.
Hopefully the longs don’t get frustrated that
it is not getting any higher and try being a wise guy and start unwinding it’s
exposures.
That will certainly excite the market and others may start joining in
and may depress gold to whence it rose from.
Interim supports are at 1223.50, 1214.50 & 1206 with
minor supports at 1224.10, 1218.40 & 1208.80.
Interim resistances are at 1235.50, 1238.50 & 1257 with
minor resistances at 1232, 1238 & 1251.70.
The daily/weekly trend changer points are at 1220.15/1176.60.
Note:- The daily point is almost within grasp and a pity if
it didn’t even try to trigger that off.
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