In the daily charts, the short term directional indicators
are pushing higher in the overbought region despite that it can easily run out
of headroom and knock onto the ceiling.
If the play is well managed, gold could
continue rising for another 2 days before that happens, in a bid of gold
positioning, that is, push it quickly above the 1300’s first so that on the
retracement down, that is able to catch it from falling back too far so that
when the direction changes again, it starts off from a higher ground.
The
medium term trending indicators are showing some signs of fatigue with slight
levelling off seen.
It has now matched the previous peak now, as it takes a
breather and ponders if it were to try to scale the peak even before that.
The
long term directional indicators are relentless and the gradient ushering it
higher looks very firm but it must contend the narrow and congested channel and
hopefully it doesn’t get tired banging on the 2 bands and give up its run
higher midway.
The momentum/volatility indicators are increasing by quite a few
notches but still not near to the hot zone yet.
Additional catalysts are
required to send it upwards and usually in the form of news or events of global
proportions.
The positive bias opened wider at a slower rate to, remaining unchanged
from the previous session, just as gold is languishing nearer the highs as
closing too low will unnecessarily cause it to look toppish and accidentally
trigger off selling and turn into a self fulfilling prophecy.
Interim supports are at 1260, 1254 & 1242 and minor
supports at 1260.60, 1254.80 & 1239.30.
Interim resistances are at 1276, 1286 & 1291.50 and
minor resistances are at 1272.70, 1280.40 & 1291.40. The daily/weekly trend changer points are at 1208.55/1290.60.
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