In the daily charts, the short term directional indicators
are in dilemma as it grazed the overbought zone and was unsuccessful in
piercing through in yesterday’s attempt.
As a result, that has started making the
market looking softer today as the indicators have crossed over and cut for the
lower now.
Perhaps the reason gold has not yet suffered from the effects makes
it look like it is defying gravity by staying up despite the indicators.
The
medium term trending indicators are not looking too healthy at all.
It
certainly looks like a triple divergence being fleshed out at the moment and
the indicators have almost crossed over and cut across in confirmation.
If gold
closes below 1248, then the highs are done for this round and gold should be
dribbling back lower. Gold can only avert the imminent if it manages to cross
back the 1260’s and close above that to keep it in play.
The long term
directional indicators continue rising and at a nice angle.
With the ceiling
being set low here, makes it difficult for gold to push too high below being
pulled back, earthwards.
Try doing high jumps with bungee cords tied to your
feet. Only 2 things can happen and that is, you jump so hard that the cords
break or you get pulled backwards.
So what gold needs to do here is to push
with so much force, that the cords tying it down, breaks and that could nicely
set gold to test the 1300’s.
The momentum/volatility indicators are waning and
lost about three notches, as gold decided to take a step back for now.
The positive
bias which was levelling off have now became minutely less positive but it is lodged
deep in the positive territory and not a worry it will flip to the other side
just yet.
Interim supports are at 1246, 1232 & 1228 with minor
supports at 1239.30, 1228 & 1218.40.
Interim resistances are at 1260, 1272.50 & 1289.50 with
minor resistances at 1268.30, 1272.70 & 1278.30.
The daily/weekly trend changer points are at
1238.05/1161.85.
Get Gold Trading Chat (Android), excerpts from there
No comments:
Post a Comment