In the daily charts, the short term directional indicators
have pushed up too much overnight and have in fact, just made contact with the
overbought zone.
It is a pity that the move was not measured so that gold could
have had a better chance of breaking the recent highs as it will get tougher to
push too much higher with the indicators are current levels.
The medium term
trending indicators have pushed well past the parity line with more upside bias
for now.
Basing on just this indicator, it looks like gold has still a long way
to go for testing higher but we have always to keep our eyes on the development
of the other indicators too.
The long term directional indicators are trying
hard to cut below the lower rib and if it’s successful, would underpin prices,
usually for a longer duration.
However, it is still at least 2 days away from
any confirmation and that will require gold to at least test and close for the
week at least 1360 or higher.
The momentum/volatility indicators have only just
woken up a little and the heat needs to be turned up at least 3 more notches,
and quick, before the market is able to make anything out of it.
Failure to do so will send it back into slumber
land and range trading will likely rule the market for some more time.
Interim supports are at 1335, 1325 & 1314 with minor
supports at 1344.20, 1335.30 & 1326.
Interim resistances are at 1354, 1374.50 & 1387.50 with
minor resistances at 1352, 1380.80 & 1386.25.
The daily/weekly trend changer points are at
1302.90/1282.80.
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