Charts say it all.
has formed a (working on the right shoulder) and formation. momentum is obviously ignoring the speculative stock market pumps based on Chairman Powell rhetoric. If this is a sign of trouble ahead (equity markets leading fundamental policy decision) I don’t know what is. also made a move above it’s 200 and 200 DMA, which is huge! Doesn’t mean it can’t dip below it, but these are long term trend indications.
showing similar strength, but not confirmed as much as yet. still trending below it’s 200 DMA, but it has confirmed 200 as critical support at 3.1k. A break below this will truly be devastating for the bulls and expect selling pressure and another capitulation of 2-3 days. I will be switching from neutral to heavy . is still forming the right shoulder and a break above $4,250 will confirm this pattern.
There are many analysts which are calling for a 10-30% drop in prices due to expectations of equity markets for 2019. Let’s not forget equity markets are in the final hyper-wave rally. Most assets and indices are in their 5th hyper wave and the sky isn’t the limit, the limit is the sky. If fundaments are ignored yes Amazon will be another 1T company possibly. Everyone will feel euphoria again and believe this run will go on forever. The contrarian knows there is only so much left in the gas tank to propel markets in such a trajectory and with global growth concerns, political risks, debt crisis and downward pressure on prices it’s only a matter of time those who have been accumulating a position the last couple of years will be nicely rewarded.
Why invest in Gold? It’s a hedge against human stupidity. will be the equivalent hedge, but needs more time to build that trust. has a few thousand years head start 🙂
Just wanted to push out something different on the front as I see so many shorts out there. If you have a longer term time frame any pull back won’t matter. The overall context is still very for …and .
Cheers,
Bobby
Published at Thu, 10 Jan 2019 01:17:10 +0000
