I was looking at some gold charts today, and noticed something on the monthly chart that hasn't been seen or occurred for around 10yrs or so, ... the 20day EMA is inline with the 200-day, a bearish event if they cross.
What got me investigating this was this article by King World, it talked about the bullish Golden Cross, as the 50-day EMA is ready to move up and above the 200-day EMA (we know that drill), and lately, the Smackdowns occur in a timely fashion, ... here is the article with the charts, ... kingworldnews.com
So I went to my charts and took a quick look, I found that the 50-day is indeed nearing the 200-day, but its not a healthy angle, and seems to me the 50-day is now looking back down, probably due to this weeks sell-off and the 20-day looks to be retreating, as it did back in March.
The first chart on the website above was printed on the 7/11, so we've seen some strong negative price action since, and we can see what happened back in March when the 20-day moved above the 200, as its doing now again screencast.com so as of this week, the price is having a difficult time trying to retaking the 50-day, let alone worry about the interaction between the 20and 200-day.
Here is a daily chart of gold from September of 2012, it features the peak, screencast.com we can see that in March of this year an attempt was made to overtake all three EMA's, but it failed and the results were lower levels.
So we go back to a monthly chart and we see something that's not occurred since it came off of the floor back from the same year in the website above, (2005) and here is where I become concerned, I see a bearish event lining-up, unless of course it changes its course and rather quickly.
Keep in mind that this is the Monthly chart, so we have a couple of weeks to correct, ... fortunately, the lowers favor the bull at this point and time, so if the 20-day EMA drops below the 50-day, ... another sell signal might be in store, they are just $1.30 away.
 |
