In
the daily charts, the short term directional indicators are still inching
higher minimally.
It has gone deep into the overbought zone now and almost
reaching the roof.
It can only take so much punishment and only a matter of
time before it breaks and pushes back below the overbought zone.
When that
happens, very likely the directional had changed and the indicators have cut
and pointing lower.
So we must eye it closely and a good daily closing is
pre-requisite for it to stay on the firmer side.
The medium term trend
indicators are resuming its earlier path now and all tiredness seems to have
evaporated for now.
It will be at least 2 day’s away from challenging the
previous peak and the indicator will likely be dancing around for another 2
days before it is known if the peak was successfully overcomed, or that it
succumbed and faltered there.
The long term directional indicators are looking
really nicely drawn, almost a text book example.
The indicators are shaping out
to be looking like the earlier run and if it’s worth anything, then the target
should be around 1270 after interpolation.
However, the band between 1239 to
1424.50 could turn out to be the bane of attempts to push it past those levels.
The momentum/volatility indicators have picked up 2 notches and it’s in the hot
zone.
Gold should be running higher if it suited.
A slight retraction in the gap is
seen today in the bias but remains firmly positive.
Supports
are at 1228, 1222 & 1216 with minor supports at 1226.10, 1219.40 &
121.60.
Resistances
are at 1247.50, 1252.50 & 1260.50 with minor supports at 1240.70, 1251.70
& 1268.30.
The
daily/weekly trend changer points are at 1192.20/1133.90.
p.s. Mib will be away and back 13 Feb 2017.
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