In the daily charts, the short term directional indicators
descended to around the 35% level now and not very far off from the oversold
region despite the nice run lower, and we visited lows not seen since May, much
to the delight of people who needed to load up on the physical now in case the
market turns back higher.
The medium term trending indicators are looking
abused and severely contorted but now that it is so, hopefully it adds on additional
pressure so gold flows a lot lower and out of grasps of the recent range which
were getting very stale.
Gold definitely must gold lower, at least to the 1200’s,
or else, it has the tendency to flip back higher especially if market stabilizes
and no new lows are seen for 2 to 3 days.
The long term directional indicators
are freshly cutting now for the lower but it is pushing hard at the bottom of
the channel.
Hopefully it can break out of the channel as it is easy to lose
motivation if one expends a lot of energy pushing at the bottom and it is so
hard to break through, managing only to only meagerly push the lower channel
just a notch or two lower, definitely not encouraging.
The momentum/volatility
indicators are getting loftier and almost reached the ignition point but alas,
it’s a holiday in the US so activities are curtailed and the full effect of the
market will not be felt.
Hopefully market is able to pick up where it left off
yesterday and push up the volatility so that the market enjoys a really good
run and break out of the doldrums.
The negative bias retracted a little today but
the gap is too wide and not easy to be closed and converted in 1 day so even if
gold refuses to break recent lows, it should remain on the softer side,
preferably below 1230.
Interim supports are at 1219.50, 1212 & 1207 with minor
supports at 1219.40, 1212.60 & 1205.50.
Interim resistances are at 1230, 1237.50 & 1242 with
minor resistances at 1231.40, 1238 & 1251.70.
The daily/weekly trend changer points are at 1257.10/1296.00.
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