Gold boost by safe-heaven demand and weak dollar

1 March 2017, 13:53
Nitas Raweewonganotai

Market condition : ADX 's value descending from 53.39 to 41.03 on Feb'2017. Including Volume decrease against Jan'2017. We define it 's still sideway in correction or retracement phase.


Gold price movement : DI+ 's value ascending from 12.729 to 22.269 in Feb'2017 against DI- 's value descending from 30.134 to 24.100 indicate price move to new hi and exactly no new low. That 's why gold price soar on Feb'2017.


Overall direction : MACD 's value ascending from -5.7885 to -2.9999 on Feb'2017 mean up direction but couldn't break zero line to the real up zone.EMA5 , SMA6 display almost golden cross but not yet that 's mean no sign to start trend in up direction yet. Stochastic %k just cross up %d cause from oversold and no room to move down so it 's probably to move up to escape oversold for correction find out downside area itself.


Support-Resistance : Price now standing between resistance SMA10 = 1258.40 and support SMA6= 1230.89 and EMA5 = 1227.64. The price range that we calculated from ATR upper range = 1280.63. So significant Resistance of gold price on Feb'2017 might be 1258-1280. 


Remark : we have checked 4H time frame it has been tested 1258-1260 twice on last Friday.


Trade power : BOP (Balance of Power) show still have small sell position left in market but no significant of buy power clearly. RSI 's value move to 51.63 first time breakthrough 50 after fell below 50 since Nov'2016.This sign till unclear cause volume not confirm yet so we have to focus next month to confirmation.


Overall technical analysis base on major time frame Month Gold running as sideway up with price range 1193-1280 without power drive to the Trend condition yet.We have to confirm next week 's sign from indicator.If there are significant volume confirm so we can define.Would it transform to the real up trend ? 


Conclusion : We have to be careful about resistance 1258-1280 on next week and our opinion next week will have big Gap open at Week time frame.It 's probably to move down to close gap @ 1230-1250 for next month price settle . 

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