GOLD 1 OZ (XAU=X) keener geopolitical uncertainty in the marketplace
Gold prices are solidly higher and have hit a nearly three-month high in early U.S. trading Tuesday, boosted by safe-haven demand amid keener geopolitical uncertainty in the marketplace. December gold futures were last up $17.20 an ounce at $1,241.70. December Comex silver was last up $0.223 at $14.805 an ounce.
Buckle your seat belts today, folks. Global stock markets were mostly lower overnight as risk aversion has returned to the marketplace amid geopolitical tensions. China’s stock indexes were sharply down after good gains posted Monday. South Korea’s and Japan’s stock markets were also sharply lower. U.S. stock indexes are pointed toward solidly lower openings when the New York day session begins. The U.S. indexes are back near their October lows.
The S&P 500 stock index has just dropped below what was strong chart support at its October low. Such suggests a new leg down in prices is coming for the U.S. stock market. That’s bullish for hard assets such as gold and silver.
Technically, gold bulls have the near-term technical advantage and gained more power today as prices saw a bullish upside “breakout” from the recent sideways trading range. Bulls’ next upside price objective is to produce a close in December futures above solid resistance at $1,275.00. Bears’ next near-term downside price breakout objective is pushing prices below solid technical support at $1,220.00. First resistance is seen at $1,250.00 and then at $1,260.00. First support is seen at $1,236.90 and then at $1,230.00.
Overall, the bias in prices is: Sideways.
By the way, prices are vulnerable to a correction towards 1,223.64.
The projected upper bound is: 1,256.82.
The projected lower bound is: 1,205.66.
The projected closing price is: 1,231.24.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 29 white candles and 21 black candles for a net of 8 white candles.
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 47.4913. This is not an overbought or oversold reading. The last signal was a sell 3 period(s) ago.
Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 62.25. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 47 period(s) ago.
Commodity Channel Index (CCI)
The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 86. This is not a topping or bottoming area. The last signal was a sell 3 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 13 period(s) ago.
Rex Takasugi – TD Profile
PREC.M.XAU= closed up 8.970 at 1,230.500. Volume was 8,900% above average (trending) and Bollinger Bands were 42% wider than normal.
Open High Low Close Volume___
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 1,221.14 1,200.99 1,273.84
Volatility: 15 14 12
Volume: 1,737 347 87
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
PREC.M.XAU= is currently 3.4% below its 200-period moving average and is in an upward trend. Volatility is high as compared to the average volatility over the last 10 periods. Our volume indicators reflect very strong flows of volume into XAU= (bullish). Our trend forecasting oscillators are currently bullish on XAU= and have had this outlook for the last 7 periods. The security price has set a new 14-period high while our momentum oscillator has not. This is a bearish divergence.