In the daily charts, the short term directional indicators are trying
to force a turn here despite gold having come off early in the Asian hours, it
resisted showing any weakness and this could propel gold back towards the 1220
in the day’s closing.
However, it could well be the market trying to defend the
utter and complete penetration of the oversold region and stem off any
overpowering urge to run lower.
The medium term trending indicators are bearing
due south and having such a good sell off, is quick approaching a previous low
point in this indicator, possibly achieved by the week’s closing.
Once this is
done and the conditions agree, could set gold up for some recovery time.
The
long term directional indicators are signalling that the pressure is still on
and not in the least dwindling yet, but
due to a constricted channel slanted downwards, means that the decline is
measured and painstakingly slow and noisy.
This could work against itself as
traders dare to only risk so much before calling it quits, especially when it
becomes noisy.
The momentum/volatility indicators are getting hot and toasty
now and gold must hit when the iron is hot and give it a major shove to get it
really going to obliterate any objections seen in all the other indicators.
Any
hesitation only erodes the momentum to continue building and set it on a
retardation course.
The negative bias has really opened up and it will not be easy
to tip the scales back to the positive side for at least 2 more weeks.
Interim supports are at 1206.50, 1200.50 & 1165 with minor supports
at 1205.50, 1200.10 & 1190.60.
Interim resistances are at 1223.50, 1228 & 1236.50 with minor
resistances at 1218.50, 1231.40 & 1238.
The daily/weekly trend changer points are at 1246.35/1294.20.
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