In the daily charts, the short term directional indicators
have dribbled to the 54% mark now while gold is managing to keep holding above
the 1280’s.
Should the indicators continue on its path lower, preferable if it
can sink to at least 30% mark, but at the same time with the gold holding firm,
will place itself in a good position when the indicators eventually turn back
up and higher and gold will be easily pulled along for the ride and with plenty
of scope on the upside after that.
The medium term trending indicators are
managing to come off a little only, and looks more like the market is drooling
instead of being bashed lower in one swift strike.
It is apparent that there
are strong undercurrents at play now and the victor is the one with the
stronger hand and if sufficient fundamentals are on its back, pushing it along.
The long term directional indicators are much nearer to the bottom of the
channel now but could be 2 days, at the earliest, that the gap has any chance
of being closed and direction compromised.
Perhaps what could be a detriment is
the channel has levelled off now and if no new highs are made in the next week,
or if gold closes below 1275 at the week’s ending, that is, whichever comes
first, the indicator would manage to close the gap and direction neutralised.
The
momentum/volatility indicators are somehow managing not to decline and holding
steady at the moment.
We need new catalysts to tip it over the red zone and
hopefully set the market running.
Gold has been boring for the past week,
preferring to keep to narrow ranges but to the delight of the range traders.
The positive bias continues narrowing but only marginally but is in no danger
of being negated this week, that is, unless gold was driven to 1230’s or lower.
Interim supports are at 1284.50, 1273.50 & 1270 and
minor supports at 1282.50, 1278 & 1270.60.
Interim resistances are at 1293.50, 1308.50 & 1320.50
and minor resistances are at 1291.40, 1305.90 & 1309.90.
The daily/weekly/monthly trend changer points are at 1273.70/1210/1301.60.
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