Commodities Countdown

Gold Stalls, Miners Underperform, Caution Once Again!

 | 

Gold is at a major inflection point on the chart. Technicians of all persuasions will be checking out this chart.


However, there are multiple technical views of the same chart. The RSI on the following chart suggests Gold is back in a bear market. The RSI is at the top level (~60) for a bear market rally. The MACD right at zero doesn't give us any clues.

Secondly, a more bullish view shows a typical major base setting up with the head and shoulders base. 

The bottom line is the Gold chart could rarely be at such a major inflection point. One of my primary indicators is the GDX:GLD ratio. Today this ratio broke down, so I am back on a sell signal. No breakout yet! Arrgh!

Be sure to check out the Commodities Countdown 2017-04-20 video. I packed a lot of information in it. I think you'll agree the commodities look in serious trouble and the world abounds with resistance.

Good trading,
Greg Schnell, CMT, MFTA.

 

Enjoy this article? Hear more from Greg Schnell at

August 10th & 11th, 2018


See how the experts are protecting themselves from market volatility and reducing risk in uncharted waters

Join us online this August for two full days of investing insights, charting wisdom and market commentary from the industry's leading technicians. Streaming live wherever you are, you'll learn exactly how the experts are navigating the market's changing tides and remaining profitable in all conditions.

Greg Schnell
About the author: , CMT, is a Senior Technical Analyst at StockCharts.com specializing in intermarket and commodities analysis. Based in Calgary, he is a board member of the Canadian Society of Technical Analysts (CSTA) and the chairman of the CSTA Calgary chapter. He is also the author of Stock Charts for Dummies (Wiley, 2018). Learn More
Subscribe to Commodities Countdown to be notified whenever a new post is added to this blog!
comments powered by Disqus