The sell-off in gold reached the acute stage Wednesday as these daily, weekly and point-and-figure charts demonstrate.
On the daily chart — and to simplify, I’m using the GLD ETF (NYSE:GLD) — you can see how the price has now dropped below the 200-day moving average and how the 50-day moving average is beginning to arc downward.
On the weekly chart, the gold ETF has now closed below its 50-week moving average for the 3rd straight session.
Then, take a look at the point-and-figure chart where GLD broke below a long-term uptrend line for the first time since — well, it’s been so long you can’t really tell…at least since 2009.
The silver chart is in similar bearish mode, but much further along. On the daily SLV ETF (NYSE:SLV) graph, you can see how the 50-day moving average crossed below the 200-day moving average in late October.
Price on the silver weekly chart is closing in on its 2011 low of 26.03. The shiny white metal broke below its long-term point-and-figure uptrend weeks ago.
I referenced a potential breakdown in the precious metals complex in this April post in Forbes and now you can see why I was concerned. One caveat now: the trading this week is on very light volume and subject to manipulation.
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