Gold price #xauusd is attempting to break above the upper line of the downtrend channel which would be a bull flag breakout, and the expected result of the bull flag pattern. The next resistance level stems from the local high made in early November at $1,966/oz. The stop-loss level stems from the local low made in early December at $1,763/oz. A break above the red line is bullish, a break below the yellow line is bearish.
The Price Percent Oscillator(PPO) shows the green PPO line rolling back up above the 0 level which is bullish as a move belwo the 0 level would indicate a shift to bearish price momentum in the intermediate-term. What we want to see going forward is for the green PPO line to cross back above the purple signal line as this would indicate a shift back to bullish price momentum in the short-term. The PPO indicator is currently reading bullish overall.
The Average Directional Index(ADX) shows the green +DI line above the purple -DI line which indicates a postive trend behind price in the short-term. The histogram in teh back round is green and declining which means that the dominant trend(bullish) is weakening. What we want to see going forward is for the green +DI line to remain above the purple -DI line and for the histogram bars in the background to begin rising to indicate a strengthening bull trend. Overall, the ADX is reading bullish.
The Traders Dynamic Index(TDI) shows the multi-color RSI line currently green and trending back above the centerline of the Bollinger Bands which indicates that momentum is shifting bullish in the short-term. The TDI background is currently green and filling the 40-80 levels which indicates that price has bullish momentum in the intermediate-term. When the bulk of the RSI action is between the 40-80 levels the overall momentum behind price is considered to be bullish.
Overall, gold price is looking good for a re-test of the $2,000/oz level and will more than likely push through it this next time. The most important thing that we learned in 2020 is that there is no limit to the trillions of dollars that will be printed and spent to prop up the stock market. Gold and silver should perform well for the foresseable future because printed money and low interest rates are the only thing keeping the stock market going. Those happen to be two perfect reasons to own precious metals, both physical and stocks.
The Price Percent Oscillator(PPO) shows the green PPO line rolling back up above the 0 level which is bullish as a move belwo the 0 level would indicate a shift to bearish price momentum in the intermediate-term. What we want to see going forward is for the green PPO line to cross back above the purple signal line as this would indicate a shift back to bullish price momentum in the short-term. The PPO indicator is currently reading bullish overall.
The Average Directional Index(ADX) shows the green +DI line above the purple -DI line which indicates a postive trend behind price in the short-term. The histogram in teh back round is green and declining which means that the dominant trend(bullish) is weakening. What we want to see going forward is for the green +DI line to remain above the purple -DI line and for the histogram bars in the background to begin rising to indicate a strengthening bull trend. Overall, the ADX is reading bullish.
The Traders Dynamic Index(TDI) shows the multi-color RSI line currently green and trending back above the centerline of the Bollinger Bands which indicates that momentum is shifting bullish in the short-term. The TDI background is currently green and filling the 40-80 levels which indicates that price has bullish momentum in the intermediate-term. When the bulk of the RSI action is between the 40-80 levels the overall momentum behind price is considered to be bullish.
Overall, gold price is looking good for a re-test of the $2,000/oz level and will more than likely push through it this next time. The most important thing that we learned in 2020 is that there is no limit to the trillions of dollars that will be printed and spent to prop up the stock market. Gold and silver should perform well for the foresseable future because printed money and low interest rates are the only thing keeping the stock market going. Those happen to be two perfect reasons to own precious metals, both physical and stocks.