FX.co ★ Technical picture of GOLD Instrument in “Regression Channels” system for March 11, 2011

4-часовой таймфрейм

Technical data:
Head channel of the linear regression: direction –up
Low channel of the linear regression: direction - down
Moving average (20; smoothed) – down
CCI: -86.1244

Explanations:
The GOLD has been demonstrating an up-directed movement currently, as the price tumbled below the moving average and the trend turned downwards. The Head channel is up-directed, that approves the expanding global uptrend. The Low channel is up-directed that means the direction change to the upside one in a shorter prospect. As the price has solidified below the moving, then the first correction target is 1406,25. In case of price fixing below Murray’s level «6/8», the next correction target rate is seen at 1390,63. Worth pointing out the price was around the Murray's highest levels for a long time, that is why now the downtrend start is quite probable. The moving average is down-directed, and the price is below it, so presently the downside trend has been preffered. The ascending motion will be topical after movement reverses to the upside. CCI indicator is near -100 reflecting a weak oversell rate.

The nearest support levels:
S1 – 1406,25
S2 – 1390,63
S3 – 1375,00

The nearest resistance levels:
R1 – 1421,88
R2 – 1437,50
R3 – 1453,15

Trading recommendations:
At present moment correctional movement has started. Correction movement target is 1406,25. It is not recommended to work out the correction or do it carefully, as both channels of the line regression are up-directed.

Aside from the technical picture, also fundamental data and the release time should be taken into account.

Chart explanatory notes:
Head channel of the linear regression –uni-directional moving blue lines.
Low channel of the linear regression - uni-directional moving purple lines.
CCI – blue line in the indicator’s window.
Moving average (20; smoothed) – blue line on the price chart.
Murray’s levels – multi-colored horizontal lines.