Gold(GC1!) closed at $1,725.8 today from an opening price of $1,686 for a $39.8(+2.36%) gain while tagging, and coming to a stop at, the upper line of the pennant formation in the process. The pennant is a bullish price formation with the expected outcome being a break above the upper line of the pennant formation and a push back up toward $1,800.
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. Right now the green RSI line and purple signal line are overlapping with the green RSI line looking like it wants to push back above the purple signal line. The green RSI line rising and trending above the purple signal line would indicate healthy bullish momentum.
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. Right now we’re seeing a leveling off after a short-term bearish pullback in momentum, what we need to see next is for the green line to cross back above the purple line as a signal that bullish momentum has returned in the short-term.
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.
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 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. Right now the green RSI line and purple signal line are overlapping with the green RSI line looking like it wants to push back above the purple signal line. The green RSI line rising and trending above the purple signal line would indicate healthy bullish momentum.
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. Right now we’re seeing a leveling off after a short-term bearish pullback in momentum, what we need to see next is for the green line to cross back above the purple line as a signal that bullish momentum has returned in the short-term.
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.
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.