In the daily charts, the short term directional indicators
have been driven back lower to the 63% level.
The indicators have fallen
steeply and may have difficult to stop the flow so we may yet see fresh lows in
the indicator.
However a corresponding move in the gold price may not happen as
it could just be in a process of resynchronization between the indicator and
the underlying.
The medium term trending indicators have corrected almost 50%
to the parity line now, and if gold continues southwards, could see a challenge
of the parity line by late week.
The long term directional indicators have cut
across and back into the channel now.
Usually, it takes at least 2 weeks before
the directional is determined but during which, the market could be painfully
slow, caught in range bound trading but to the delight of range traders.
The momentum/volatility indicators are driven
to ultralow levels with the barest minimum palpable volumes.
It will take some
major news or fall out to shake up the market again.
However if the market is
able to hold the lows for at least 3 days, then there is a slight chance the
market might succeed in pulling back and turn it around.
The positive bias lost
heavily and narrowed tremendously with the gap now, susceptible of being
closed, the bias negated and turned, negative.
However this still requires a
very strong hand for at least another 2 days and gold to be around 1240’s.
Interim supports are at 1265, 1260.60 & 1256.50 with
minor supports at 1260.50, 1252.50 & 1238.
Interim resistances are at 1273.50, 1276.50 & 1291.50
with minor resistances at 1272.70, 1278.30 & 1291.40.
The daily/weekly trend changer points are at
1294.25/1215.45.
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