Carrying forward from the weekly note, in the weekly gold is looking good to rebreathe up with the support of the turning indicators. We just hope Momentum will keep this up (i.e. not closing below 1255 + close above 1280). The challenge, though, is to pass the FOMC earthquake safely. (Weekly range: 120x to 130x/131x)
Daily: Momentum has picked up a beat, but still lacking. A good trader told me once, there is an anomaly, in that after a good closing on Friday, Asia is usually "dishoarding" (by taking profit action) to act as if it is resisting but spring board off higher later, then gold may poke higher just as the early Europeans join the market. (Intraday is at 1272.3, and it bounced from there). (Daily range: 124x - 129x)
The worry though (as momentum is still lacking), indicators have started to show weariness of the bull. The solution is a simple close above 128x, hopefully momentum can bring it there. If not, (let alone close below 1274), the indicators will "start" (still need to be confirmed) to look good to bring it down.
Intraday: The good news is morning open managed to beat the last high. at 1272.3 not broken yet, so it s a relief (for a few hours only). Hourly touch and close below 1270 may bleed the bulls, and may open the effects of O-bought-ness + divergence (which have been held up quite nicely for a few days). (Intraday range: 126x - 128x)
1276/1277 is now the temporary floor.
Is this a classic example of how London and NY traders do not take each other very well, like cat & mouse fight? One thing we can see here, NY dont like to follow others and would rather create their own path before resuming their true intent.
One hourly bearish engulfing candle should be enough to scare off the bulls. Indicators are in harmony singing "correction" song at the moment, first 1278 break, second 1275 break, will it break Pivot at 1272? The song can stop if somehow hourly can manage to close above 1283 for now.
Daily close have to be above 1275 (preferrably 1278), or else. the daily indicators will start to look like a dragon head.