In the daily charts, the short term directional indicators
have descended to around the 40% mark now but gold didn’t move in a similar
fashion.
So it would seem that the 1320
is holding the market well and helping to stabilize it here.
It will be good if
the market is able to maintain below the 1330 but above the 1320, then in all
likelihood, the indicators will creep nearer to the oversold region and from
there managed to do a turn around, then the market stands a good chance to push
back nearer the recent highs.
The medium term trending indicators are erasing
gains swiftly and corrected by almost two thirds and with a slightly higher
chance that the indicators will try to push lower from here, targeting the
parity line and if all goes accordingly, then the earliest the parity line will
be challenged will be next mid-week.
The long term directional indicators are
in the channel now and it will take at least a week before the new direction
emerges.
The channel is now sloping down sharply but luckily the bottom band is
helping to hold gold here as that acts as a psychological barrier and in order
to break through requires a forceful action, usually on the back of some major
news.
So gold will likely consolidate temporarily and the next gust will
determine which direction it will be blown.
.
The momentum/volatility indicators
are sputtering at the moment as the descent seem to have grown some brakes, lower
by only a notch from the previous day.
The positive bias gave up some ground slightly
quicker than expected, but likely not in danger of being negated this week as
the gap is still wide enough to withstand some selling, but if gold closes
below 1300 for the week, then the bias will be negated and turn negative.
Interim supports are at 1317, 1303 & 1297.60 with minor
supports at 1315.50, 1303.60 & 1298.30.
Interim resistances are at 1328.50, 1334.50 & 1351.50
with minor resistances at 1335.50, 1338 & 1352.
The daily/weekly trend changer points are at 1354/1231.50.
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