Review of $XAU/USD - GOLD Spot (XAU USD)
as of Thursday, January 27, 2011
Today's Price Action
Change -30.0000 (-2.23%) prices closed lower than they opened. with weak Bids going into the close.This is bearish, as prices closed significantly lower than they opened. If the candle appears when prices are "high," it may be the first sign of a top. If it occurs when prices are confronting an overhead resistance area the long black candle adds credibility to the resistance. Similarly, if the candle appears as prices break below a support area, the long black candle confirms the failure of the support area.
An engulfing bearish line occurred (where a black candle's real body completely contains the previous white candle's real body). The engulfing bearish pattern is bearish during an uptrend. It then signifies that the momentum may be shifting from the bulls to the bears.
If the engulfing bearish pattern occurs during a downtrend (which appears to be the case with $XAU/USD - GOLD Spot), it may be a last engulfing bottom which indicates a bullish reversal. The test to see if this is the case is if the next candle closes above the bottom the current (black) candle's real body.
MARKET SENTIMENT
PulseScan Swing Vix
PulseScan: -38.05
Swing Vix: -38.28
The Market Pulse is negative since it is trading below its zero signal line.The PulseScan crossed above the Swing Vix creating a UP Trend Channel as of 1 period(s) ago.
A buy or sell signal is generated when the Swing Vix moves out of an overbought/oversold area.
*The last signal was a Over-Sold Buy 1 period(s) Ago.
The Swing Vix does not currently show any Failure Swings.The security price has set a new 14-period low while the Swing Vix has not. This is a bullish divergence. Since the PulseScan leads the market 3-5 days out we will wait to see if an upside breakout occurs.
*Since the last Swing Vix signal, $XAU/USD - GOLD Spot's price has decreased 2.23%, and has ranged from a high of 1,349.0000 to a low of 1,311.0000.
MOMENTUM
MARKET TREND - Currently the TREND is - The UpTrend is still entact with prices holding above trendline support at- 1,246.7400.
TREND STRENGTH - ,
There is currently no trend strenght reading at this time.
TRENDLINE RETRACEMENT
The close is currently Above it's PulseWave Cycle TRENDLINE RETRACEMENT. - 1,246.7400
The close is currently Above it's Long Term TRENDLINE RETRACEMENT. - 1,261.5083
The close is currently Below it's Intermediate Term TRENDLINE RETRACEMENT. - 1,363.9834
The close is currently Below it's Short Term TRENDLINE RETRACEMENT. - 1,348.0730
INTRADAY PRICE PROJECTIONS
RESISTANCE 1,340.4500
SUPPORT 1,319.5500
WEEKLY PULSE WAVE PRICE PROJECTIONS
PulseWave BreakOut RESISTANCE - 1,352.4000
PulseWave BreakOut SUPPORT - 1,321.9000
VOLATILITY
On 1/27/2011, $XAU/USD - GOLD Spot closed below the lower band by 0.0%.
This combined with the steep downtrend suggests that the downward trend in prices has a good chance of continuing. However, a short-term pull-back inside the bands is likely.
Disclosure
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