In the daily charts, the short term directional indicators
are well into the overbought zone and for the first time in more than a week,
it has finally shown a little weariness as tapering has started and levelling off
could be the next order of business.
However, gold needs to continue pushing
higher and higher to avoid the inevitable.
It will be good if gold manages to
push above 1260 and closes above that or else, the indicators will look heavy
laden and tempted to break back under the overbought zone which could mean that
gold remain weaker thereafter, for a week or two.
The medium term trending
indicators are looking still primed for seeking to at least, test back to the
previous peak, probably in the next three days this could be achieved.
However, gold must consistently close above
the 1250 for the next few days or the attempt, could be in trouble.
Trading below the 1250 but closing back above,
does not invalidate the trend for now but closing below, could lead to that on
successive closings below that.
The long term directional indicators are
drawing a nice channel but it is stiffly turned upwards and newly birthed
direction could mean a longer shelf life for the trend.
However, gold is
pushing right at the top of the channel and hard to make too much headway, has
become a victim of its own success.
So, we need some major news to catalyse
gold to break out, well and above the channel and turn it into a runaway
market.
Otherwise, we will continue as we have for the past week, a labourious
climb hither.
The momentum/volatility indicators are recovering very well,
almost a 50% recovery so far but still far away from turning red hot any time
soon.
The positive bias has stopped widening and levelled off since the past
session, taking a breather from the hectic and forceful action of the previous
week.
Since the bias is not a lot wider, it could be demolished with 3 good
days of selling if profit takers start their action early.
Interim supports are at 1249.50, 1242.50 & 1237 and
minor supports at 1239.30, 1228 & 1219.40.
Interim resistances are at 1264, 1287 & 1290 and minor
resistances are at 1268.30, 1277 & 1280.30.
The daily/weekly trend changer points are at 1217.85/1287.15.
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