In the daily charts, the short term directional indicators
have finally succumbed to the swan song of the declining gold prices and have
now crossed over, cutting back lower and just below the overbought region.
As
it is very near to the overbought region, means it can go for a long way down if
it suited but whether or not gold prices followed suit, is relative and it may not
mirror the indicators exactly.
However, if it mirrored perfectly, then gold
could be trying the 1240’s just when the indicators start hitting the oversold
region.
The medium term trending indicators cutting lower have solidified in
yesterday’s closing and pointing very sharply lower.
This could provide the
necessary fuel to give it a good shove lower and speedily too.
The indicators are
at a very good height to the parity line and it could lose the gains of the
recent rally and 1213 could be targeted.
The long term directional indicators are now
levelling off with a slight dripping lower just the gap is narrowing with some
chance of it being closed in another 3 days’ time.
If that happened, could set
gold to trade the range for a week before a new direction is forged.
The
momentum/volatility indicators are driven south with a strong hand as it lost
at least 5 notches in the recent fallout.
The positive bias is swinging more
heavily towards the negative side as the gap has narrowed greatly.
However, it
needs a sustained move lower for another 2 days in order to tip it into the
negative side.
The minute it stops testing new lows, the positive bias will
start opening up again.
Interim supports are at 1263, 1257 & 1253.50 with minor
supports at 1260.60, 1254.80 & 1239.30.
Interim resistances are at 1276, 1292 & 1295.50 with
minor resistances at 1272.70, 1278.30 & 1291.40.
The daily/weekly trend changer points are at
1295.50/1213.80.
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