On Friday, gold made a last ditch attempt to push higher but
didn’t manage to close at the highs.
In normal circumstances in such scenario,
gold ought to be softer for the next week or so.
In the daily charts, the short
term directional indicators are southerly facing but could be in the early
stages of trying to level off, maybe in the hope of pushing off higher from
here.
Even if it were successful, the current levels now are already so near to
the overbought zone, any attempts could see it hit the overbought region in one
move and it could be over.
The medium term trending indicators are looking very
nice and steepened again, pushing a little higher and piercing the parity line
from below.
Usually the market will be dribbling when challenging the parity
line before proceeding on original path.
The long term directional indicators
have somehow managed to make up for some lost gusto and tangled with the other
indicators at the bottom.
However, a confirmation of the new direction has yet
to materialize but if it did and especially if there were follow through
trading, then it is poised to be headed higher.
The momentum/directional
indicators are like a gentle summer breeze, not strong enough to stir up
anything.
However, as indicated in earlier sessions, something was moving in
the undercurrents and that was translated in last Friday’s move.
Just as well,
the bearish bias has been eradicated and has now become positive but the
question is, for how long?
Interim supports are at 1270, 1261 & 1250.50 with minor
supports at 1270.60, 1267.20 & 1260.60.
Interim resistances are at 1276, 1284 & 1290.50 with
minor resistances at 1277.30, 1280.40 & 1291.40.
The daily/weekly trend changer points are at
1353.45/1364.55.
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