In the daily charts, the short term directional indicators
are pushing lower linearly without hitting any road bumps so far.
They have now
reached around the 60% mark and at the pace at which it is descending, there
could just be about 2 to 3 days’ worth of trying to get lower, if at all, under
normal market conditions.
However, the same is not reflected in the gold price
which is still behaving badly and trying to break protocol.
Either one has to
give sometime or other and it will be nice if it was the latter, so that it has
some down time as it is getting stale where it is.
The medium term trending
indicators have today crossed and cut over, rather deeply.
This piles on the
pressure on gold but as the cutting is fresh and still malleable to a certain
degree, it can easily flip back to the other side.
Once the week is done and it
remains cutting downwards, then the trend is set and should see gold trading
lower at least the whole of next week.
Even if the prices didn’t move too low,
it will not be too quick to rise quickly, barring of course, some
earth-shattering event or news.
The long term directional indicators are
touching each other now and gold needs to close below the 1240’s before the
upside bias is confirmed over and could open up to range bound trading between
1 to 2 weeks.
The momentum/volatility indicators are at levels that’re chaining
down gold from moving too far from current levels, just about plus or minus $15
on either side.
The positive bias have narrowed a fair bit since yesterday and
it could all be over by tomorrow if gold continued seeking lower closes.
Gold
needs to be back to at least 1230 or below before the bias is cowed.
Interim supports are at 1239, 1233 & 1227.50 with minor
supports at 1239.30, 1228 & 1218.40.
Interim resistances are at 1247.50, 1255.50 & 1261.50
with minor resistances at 1251.70, 1268.30 & 1272.70.
The daily/weekly trend changer points are at
1232.75/1196.80.
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