In the daily charts, the short term direction indicators have
gotten one leg just into the overbought region with the other dangling quite a
way off.
Now that we have come into the zone, it is important to really start
picking up the pace.
If it doesn’t, it is like racing down a U-bend on one side
and failing to push over the other side and usually, it decelerates fairly
quickly and drop back down just as quickly.
The medium term trending indicators
are nowhere near the previous peak despite gold prices pushing above its
earlier peak.
This is not particularly good as a divergence is forming but the
market could be develop 2 or 3 more dunes, each smaller than the preceding one,
before finally deciding to give it up altogether.
Or, the reverse could happen
too. The long term directional
indicators are on the verge of trying to cut back from the bottom and needs
gold to close at least 1225 and higher in order to do so.
Preferably, it needs
to hold above that for the next couple of days before the confirmation is clear
and stable.
The momentum/volatility indicators are so close to hop into the
fast lane, just need 2 gear shifts and we are there.
The positive bias is also
widening further today and hopefully a fun ride up is seen this week.
Interim supports are at 1223.50, 1211.50 & 1205.50 with
minor supports at 1219.40, 1212.60 & 1202.60.
Interim resistances are at 1230, 1247.50 & 1259 with
minor resistances at 1231.40, 1238 & 1242.
The daily/weekly trend changer points are at
1185.40/1133.90.
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