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4 Hour Gold Chart - Update 5:00 PM CDT
Gold is currently is in a consolidation phase with a higher bias. The broad range that is containing it is $1435 on the topside and $1390 on the bottom.
It has moved from the bottom of the range to the top and is now at a point where it either needs to clear $1435 and press on towards $1445 or it will set back towards $1420. While it has pushed through what I consider to be an important technical resistance level, namely $1430, it cannot seem to hold its gain above this level for any length of time. This suggests that the bulls are hesitating to take on the selling cap at $1430 thrown in place by the bullion banks.
If you note, both the Percent R and the Stochastic Indicator, trading range indicators, are now either at their sell zones or are moving down and away from that zone. Bulls need to quickly push this market higher or they run the risk that some of their more fickle comrades will liquidate longs and wait for a lower level to re-enter on the long side again. A fast, strong push through $1435 will negate the negative signals from Percent R and Stochastics.
Should price move down away from today's resistance zone and find buying near $1420, we could see the range in gold tighten considerably.
Dan,
ReplyDeleteDo you find any of the indicators to be better predictors or do you always use several in concert?
DocJim - the more indicators that agree, the better the signal as a rule.
ReplyDelete