In the daily charts, the short term directional indicators
are recovering well and nearing the 27% level now.
A corresponding move is not observed in the
gold and the 1220 was not overpowered in yesterday’s closing.
So the recovery
is not set on solid ground, like building a house on sand which could give way
any moment, or the sand could harden and all will be fine.
The medium term trending
indicators have turned back upwards and cut across now. As it is freshly cut
across, it needs at least a day or two in order solidify it.
Coming off the
lows and after having dropped from a great height, makes it an interesting play
in the coming weeks as it first challenges the parity line and then the
previous high peak.
If it is taken all
the way up back to the previous peak, could send gold back to test the recent
highs near to the 1300.
The long term directional indicators are trying to
level off and kill off the current direction by bringing it into some
consolidation. Gold must close above 1220 before it can successfully level off
but needs gold to be a lot higher, at least 1240, in order to turn it into an
uptrend.
The momentum/volatility indicators are lowered down by 5 notches as
the sellers have scaled back, watching the next major event or news, before
deciding whether to renew its attack on the recent lows.
The negative bias
although narrowed a little from the previous session, the gap built up does not
make it an easy target and will not be easily cowed.
Interim supports are at 1211.50, 1205.50 & 1205 with
minor supports at 1212.60, 1204.70 & 1200.10.
Interim resistances are at 1222, 1228.50 & 1238 with
minor resistances at 1221.70, 1231.40 & 1240.70.
The daily/weekly trend changer points are at 1238.40/1294.20
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