In the daily charts, the short term directional indicators
have dropped lower to around the 27% mark now with one leg just touching the
oversold region.
In a normal run, the indicator will probably be exhausted by
the week’s ending but if there are good follow through selling, then the
softness could precede into the following week, at least the first half but new
daily lows must be made and the week’s closing below 1210 for that to happen.
The medium term trending indicators are trundling happily along with its sight
set on the 1200’s for now with still a week’s worth of downside play, if that’s
what the market wanted to do and if gold does not close back above the 1238,
which could negate the trend prematurely.
The long term directional indicators
are looking forceful and purposeful at the moment with only the slight problem
that gold is coasting the bottom of the channel.
If you do this for too long
without breaking out, then everyone gets skirmish every time it pushes on the
channel and bounces back, making one nervous and prematurely square off their
shorts.
So hopefully the players do not get overly frustrated and lose interest
for now, as the trading is going to get more choppy with each new low conquered.
The momentum/volatility indicators have now reached the tip of the boiling
point and needs just that little bit of extra oomph, to tip over to the other
side.
Once that’s done, could set gold for a faster run lower and hopefully a
sustained run as well.
The negative bias continues widening further today and
making it more difficult to stem the market from flowing lower or try to
recover.
Interim supports are at 1216, 1212 & 1207 with minor
supports at 1215, 1208.80 & 1200.10.
Interim resistances are at 1225.50, 1233.50 & 1238 with
minor resistances at 1231.40, 1238 & 1251.70.
The daily/weekly trend changer points are at 1254.05/1296.00.
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