In the daily charts, the short term directional indicators
are speeding up too much without a corresponding action in gold.
It has reached
almost to the 68% level now and may be pushing on the overbought region by
Thursday only if gold still remains cautiously on the higher side, or at least
hold above 1235.
The medium term trending indicators are opening up its pace in
this ascent and at least one of the appendages will be initially testing the
parity line, with the other at least 2 days away.
Before being able to
successfully subdue the parity line, usually it will face some friction in the
attempt, like trying to break the ice surface to catch your breath.
Success is
not an option and failure condemns gold to being beaten back to whence it came
and could be a painful thing if caught on the wrong side.
The long term
directional indicators are not ready to pick sides yet as, having just
cancelled off the down trend and the new trend will emerge most probably at the
starting of next week.
Right now, it is sitting smack right in the middle of
the channel and will take news of major impact to help it break out of the
channel which is upwards slanted.
Gold is pressing right at the top of the channel
and higher ground may take longer to push through with gains retarded unless some
catalyst helps push it higher.
A closing above 1260 will probably help the new
trend come into being but this must be achieved in this week.
The
momentum/volatility indicators are declining rapidly as more and more shorts
are unwinding their positions so this makes for edgy trading until the momentum
builds up to warrant longer term positions to be held.
The bias is at
equilibrium, the indicators are at meshed together but from the price action
this week, under normal circumstances, there should be some follow through
action and a move into the positive region is a reasonable expectation.
Interim supports are at 1233, 1227.50 & 1222.50 and
minor supports at 1228, 1219.40 & 1212.60.
Interim resistances are at 1244.50, 1249 & 1288 and
minor resistances are at 1242, 1251.70 & 1268.30.
The daily/weekly trend changer points are at 1206.25/1290.60.
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