In the daily charts, the short term directional indicators
have almost made contact with the oversold region and if the market doesn’t run
lower soon, the recent softness will start waning before you noticed it.
It
will be good if it can at least touch back to recent lows nearer to 1300’s.
At their current low levels, even if gold manages to test recent lows, unless there were some major catalyst at that point, to help rationalise it below 1300, it will more likely recover and gold may recover with that.
The
medium term directional indicators are forming nicely, sloping downwards, below
the parity line and hopefully this will be sufficient impetus to push gold
lower and if we are lucky, we get to see 1290’s if only basing on just this
indicator.
The long term directional indicators are not near enough to give too
much clues as to the next major move.
These indicators are more useful when
market have sustained moves, otherwise you can get easily whipped if just
basing on this for your trading.
The momentum/volatility indicators are not in
an excitable state yet so any moves, may not have as much follow through as we
like.
Who in their right minds like taking huge risks of swimming in the open seas
with unknown dangers and then surf for 10 feet and the waves just dies down.
The
returns are just not justifiable unless, you are a range trader.
Interim supports are at 1308, 1304 & 1277.50 with minor
supports at 1303.60, 1298.30 & 1294.
Interim resistances are at 1325.50, 1331 & 1351.50 with
minor resistances at 1316, 1335.50 & 1352.
The daily trend changer point which was resting at 1313.70
has just been triggered while the weekly trend changer point is at 1288.30.
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