In the daily charts, the short term directional indicators
have confirmed turning up and trying to push back above the oversold region.
If
that’s achieved, we could look forward to gold trading back towards at least
1270’s by next week.
If pushing back above the oversold region is unsuccessful,
then it could become a ploy to shake out the weak shorts before resuming its
downward spiral.
The medium term trending indicators are at still trying to
close the gap and cut across and gold must move to at least 1260 before there
is chance of the confirmation coming.
If the confirmation never comes, then,
gold could retest recent lows first as it deliberates its next move. However,
usually coming off such a steep gradient, it seldom succeeds cutting back
higher on the first attempt.
We might see 2 to 3 attempts before it is
successful and that could mean gold suddenly losing ground one day but then
recover back the next day but never overshooting the previous high and tries
until it does.
The long term directional indicators are still downward sloping
but the channel is its second day of leveling off.
Gold is restricted by the
top of the channel which it was banging on, earlier in the session, but has now
come off it and recovering before the next move.
The momentum/volatility
indicators are still in recovery mode but really too low and hard to ride on
any move for any prolonged period of time.
The negative bias was nullified but
the day is not done yet, being knocked back to zero and so, it is waiting for
gold’s next move, which will set the tone in the next session.
Interim supports are at 1249, 1237 & 1233 with minor supports
at 1239.30, 1228 & 1219.40.
Interim resistances are at 1257, 1270 & 1288.50 with
minor resistances at 1268.30, 1277.30 & 1291.40.
The daily/weekly trend changer points are at 1261.45/1217.05.
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