Monday, February 22, 2016

$GOLD Chart hasn't looked this bullish since 2009

Unless things get much worse for $GOLD in a hurry, it is about to see its 50-day moving average cross up through its 200-day moving average. This is confirmed by price action; we've seen a big rally. This confluence of events hasn't occurred since February 2009.

We have seen the 50-day cross up through the 200-day since then. But it was when the market was ranging and gold prices headed lower, so it lacked a big price rally. For example, the 50-day/200-day crossover in 2012 was accompanied by only a 6% rally at the time the crossover occurred.

Here you have a weekly chart so I've translated the 50-day MA into a 10-period MA, and the 200-day MA into a 40-period MA

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(Updated chart)

Maybe I'm being too optimistic. I'll admit that's happened in the past. But this chart looks pretty darned good.

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