Sunday, May 28, 2017

Gold Daily Chart; Golden Cross

Gold prints a golden cross with the 50-day MA moving up through the 200-day MA forecasting higher prices for gold ahead. Typically, however, price will tend to retreat when a golden cross occurs (since a long rally already occurs to push the 50-day MA  higher) but prices will be higher in the weeks and months ahead if the golden cross remains in play.

The death cross occurred in November with the 50 stabbing down through the 200 forecasting trouble ahead. Price continued dropping for another month. Typically, you would expect a bounce as the death cross occurred but price simply kept on cratering. Gold price remained under the early November highs since the death cross was in play; until now. The golden cross is taking over.

Gold bulls will be happy as long as the 50 remains above the 100. Gold bears need the 50-day MA to roll over to the downside which means price would need to drop under the 1255 level and heading lower. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.

Note Added Monday Morning, 6/5/17: Gold oil finishes last week at 1280 and is at 1281 to begin the new week.

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