In the daily charts, the short term directional indicators are cutting
back upwards, leaning on testing higher after successfully defended gold from
breaking out into the oversold region.
Now that is done, it could see gold
being ushered back northwards for the week but it must push higher forcefully
or else, it is only some retracements in the offing in a resynchronisation
process, not a full fledge recovery.
The medium term trending indicators leveled
off by a certain degree but in no way that the trend is under threat today, and
at least 2 days are required, to push it over the line to the other side.
If it
is successful being pushed across, then, it could set gold up to be pushing
back higher in a bigger run as the indicator is at such a low level with plenty
of overhead room to push into.
The long term directional indicators are pushing
hard on the bottom of the channel but it is only giving way in small bits and
pieces until the market is tired out.
What could upset it is, gold pushes and
closes above 1220 and that could set up a chain reaction that leads up to the
negation of the current direction.
If that doesn’t happen, then the down trend
is intact and will continue to pressure the market lower, albeit nosily, not in
a straight line.
The momentum/volatility indicators stagnated in the previous
session and stalling in its trajectory and if no breadth of fresh air comes
into the market, more than likely the indicators will go into a freefall and
interest in the market evaporates easily. The negative bias pulled a wee bit
closer in the previous session and remains firmly entrenched for now.
Possibly
it needs gold to be closing nearer the 1260’s before it can be cancelled and
turn the other way.
Interim supports are at 1204.50, 1201.50 & 1165 with minor supports
at 1204, 1200.10 & 1190.60.
Interim resistances are at 1222, 1237.50 & 1247 with minor
resistances at 1218.50, 1231.40 & 1238.
The daily/weekly trend changer points are at 1242.15/1294.20.
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