Gold(GC1!) closed at $1,740.9 for a +$17.8(+1.01%) gain today. Price also made a push above the upper resistance line of the pennant formation which is a bullish move and one that was anticipated in previous chart analysis shared. While this was a bullish break above resistance, we need to see a sustained move higher for a sign of uptrend continuation. Overhead resistance from here that price needs to beat is in the $1,750-$1,800 range which is the red area and where price saw previous resistance back in April.
The Relative Strength Index(RSI) shows the green RSI line trading just above the 50 level and indicates bullish short-term momentum behind price. An RSI reading above 50 indicates bullish short-term momentum while a reading below 50 indicates bearish short-term momentum. The purple RSI signal line is also above the 50 level which indicates bullish intermediate-term momentum behind price. The green RSI line has crossed above the purple signal line which is a bullish cross and indicates that short-term momentum is increasing.
The Price Percent Oscillator(PPO) shows both the green PPO line and purple signal line above the 0 level which indicates intermediate-term bullish momentum behind price. A reading above 0 indicates bullish momentum while a reading below 0 indicates bearish momentum. When the green PPO line is above the purple signal line it indicates bullish price momentum in the short-term, the green PPO line trending below the purple signal line indicates bearish price momentum in the short-term. Currently the green PPO line is beginning to trend up which indicates an increase in short-term bullish momentum, but needs to cross above the purple signal line as a short-term bullish momentum signal.
The Average Directional Index(ADX) show the green trend line above the purple trendline which indicates that the short-term trend direction is bullish. The histogram behind the green and purple directional lines is declining though which indicates that the upward trend direction has lost strength. In general during an uptrend, you want to see the green line rising above the purple line with a rising histogram as a sign of strength in the uptrend.
Volume has been low since late March, but is beginning to pick back up. The volume bar colors are: bright green = price and volume are higher than they were 10 days prior. Dark green = price is higher than 10 days prior but volume is lower than 10 days prior. Bright purple = price is lower than 10 days prior but volume is higher. Dark purple = price and volume are both lower than 10 days prior. The coloring is to help identify both volume and price trend.
The overall view on gold remains bullish this year with the expectation that gold will test and make a new all-time high above $1,923 which was set in September 2011. In the short-term we want to see price hold above the stop-loss level in order to maintain bullish bias, as well as continue to trade above the short-term stop-loss level, with an eventual push above the upper line of the pennant formation which will likely lead to a new upside breakout in price. The stop-loss level was moved up today on the pennant breakout from $1,660 to $1,680.
The Relative Strength Index(RSI) shows the green RSI line trading just above the 50 level and indicates bullish short-term momentum behind price. An RSI reading above 50 indicates bullish short-term momentum while a reading below 50 indicates bearish short-term momentum. The purple RSI signal line is also above the 50 level which indicates bullish intermediate-term momentum behind price. The green RSI line has crossed above the purple signal line which is a bullish cross and indicates that short-term momentum is increasing.
The Price Percent Oscillator(PPO) shows both the green PPO line and purple signal line above the 0 level which indicates intermediate-term bullish momentum behind price. A reading above 0 indicates bullish momentum while a reading below 0 indicates bearish momentum. When the green PPO line is above the purple signal line it indicates bullish price momentum in the short-term, the green PPO line trending below the purple signal line indicates bearish price momentum in the short-term. Currently the green PPO line is beginning to trend up which indicates an increase in short-term bullish momentum, but needs to cross above the purple signal line as a short-term bullish momentum signal.
The Average Directional Index(ADX) show the green trend line above the purple trendline which indicates that the short-term trend direction is bullish. The histogram behind the green and purple directional lines is declining though which indicates that the upward trend direction has lost strength. In general during an uptrend, you want to see the green line rising above the purple line with a rising histogram as a sign of strength in the uptrend.
Volume has been low since late March, but is beginning to pick back up. The volume bar colors are: bright green = price and volume are higher than they were 10 days prior. Dark green = price is higher than 10 days prior but volume is lower than 10 days prior. Bright purple = price is lower than 10 days prior but volume is higher. Dark purple = price and volume are both lower than 10 days prior. The coloring is to help identify both volume and price trend.
The overall view on gold remains bullish this year with the expectation that gold will test and make a new all-time high above $1,923 which was set in September 2011. In the short-term we want to see price hold above the stop-loss level in order to maintain bullish bias, as well as continue to trade above the short-term stop-loss level, with an eventual push above the upper line of the pennant formation which will likely lead to a new upside breakout in price. The stop-loss level was moved up today on the pennant breakout from $1,660 to $1,680.