In the daily charts, the short term directional indicators
are just sitting above the overbought zone and not budging and somehow managing
to defy gravitational pull back earthwards.
Without new highs made, the
indicators could easily be pulled back downwards as they are the most whippy
with the least resolve.
The medium term tending indicators are looking a little
dicey as a cross is being attempted right now and will be most successful if
gold closes below 1260 today.
If the cross over is confirmed, could send gold
on a nice long ride back lower towards the 1200 as the target.
Also, it will be
coming off from a very nice height so it will have sufficient room for trying
the lows.
The long term directional indicators are well entrenched for now and
can only be dislodged off its perch is, if gold closes below 1257.
With such a
narrow channel to navigate, it is most unavoidable that it keeps banging the
top and does a 180 degrees and start hitting the bottom next.
This is most
frustrating for trend traders as they will be bled dry, each and every time.
The momentum/volatility indicators are at levels very near to the hot zone
today, just 3 more notches could help send gold in a dizzying frenzy but don’t
hold your breath as it is not plain smooth sailing for gold to test higher.
From
here on, as gold has remained positive for almost a month already, some
retracements are due and good chance for indicators to resynchronise itself,
thereby creating the necessary space, before attempting to push it higher
still.
The positive bias is continuing to open wider today but at a decreasing
rate as it is getting weary. So maybe we cannot expect gold to move in a bigger
fashion.
Interim supports are at 1261.50, 1253.50 & 1249.80 and
minor supports at 1260.60, 1254.80 & 1239.30.
Interim resistances are at 1275.50, 1285.50 & 1291.50
and minor resistances are at 1272.70, 1280.40 & 1291.40.
The daily/weekly trend changer points are at 1253.95/1283.85.
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