In the daily charts, the short term directional indicators
are pushing lower and almost reached the 30% level.
It is also a tad too near the
oversold region, so depths on this drive lower might not going too deep.
The medium term trending indicators has a
confirmed penetration of the parity line at yesterday’s closing.
Typical market behavior in such circumstances
will be, the market will be dribbling around here, trying to hold the parity
line.
This trending indicator might have difficulty pushing lower initially before
finally succumbing and we might see gold have a nice drop of at least thirty to
forty dollars.
However, all the other necessary ingredients must be in
collusion. If all for one is not possible, then we at least need three of them.
The long term directional indicators look promising at the moment and they have
come together and a good chance for the indicators to be confirmed for a spin
lower.
However it has only come together and not conclusively crossed the line
and the confirmation maybe averted should gold close back above 1265 tonight.
The momentum/volatility indicators has hit rock bottom and may rocket back the
other way.
There is also a tinge of bearishness appearing but can be easily
overpowered if gold goes back higher.
Interim supports are at 1248.50, 1241.50 & 1236.50 with
minor supports at 1239.30, 1228 & 1218.40.
Interim resistances are at 1256.50, 1259.50 & 1264.50 with
minor resistances at 1268.30, 1272.20 & 1278.30.
The daily/weekly trend changer points are at 1300.30/1233.40.
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