In the daily charts, the short term directional indicators were
not successful in its attempt to stop looking weaker and didn’t manage to cut
back across and higher.
The indicators today continue sliding a little more
lower and around the 60% mark and an early indication that it would likely
continue correcting and resynchronising.
The major benefit being, although the
indicators are being pulled back, we do not yet see a corresponding move in
gold and once the indicator has corrected sufficiently to at least the 30% mark,
and managed to turn around from there with gold keeping above 1280’s, that
could well send gold towards 1300 and higher.
The medium term trending
indicators are pulled towards the parity line now and without any major
geopolitical events shaking the market, confidence in gold looks shaken for now
and targeting the 1250’s could be a reasonable expectation in the next week.
The long term directional indicators are still underpinning the market but the
gap to the channel narrows more today with the channel almost horizontal, like
it is losing trajectory.
This also puts a top to the move for now and could
become a bugbear should the market challenge the recent highs again and the
only way to wash it away would be for gold to close preferable above at least
1295.
Then to help totally erase all traces of that, a closing above 1302 will
likely guarantee that and we could push towards 1320 thereafter.
The
momentum/volatility indicators are just maintaining and keeping near to the red
zone, about 5 notches to push it there.
The positive bias is losing ground at a
slower pace today and not unreasonable should it start to widen again from here
but hopefully with the momentum in the red zone so that we can break out of recent ranges which have become stale
now.
Interim supports are at 1283.50, 1273.50 & 1269.50 and
minor supports at 1282.50, 1278 & 1270.60.
Interim resistances are at 1293.50, 1308.50 & 1320 and
minor resistances are at 1291.40, 1305.90 & 1309.90.
The daily/weekly/monthly trend changer points are at 1271.35/1210/1301.60.
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