Oct 9, 2016
Update
Nothing happened this week. If you read the last post it is the same... no need even to update the charts. I expect move lower before we can think of a bottom.
The move is corrective and choppy, looks like a triangle. The down trend is in tact, the price action develops below the MA50 on the daily chart. I can not imagine this to be the start of a move higher... first we should see some spike lower and fear before any reversal higher. The only change - because the move continues for too long the scenario with lower low looks more probable now.
DJIA hourly chart the pattern is more clear. It looks like triangle for wave B. It is too long for small wave b of 2 so the scenario with lower low has higher probability.
The price is struggling with MA50 which is bearish. Last week the index managed to move above it this week barely touch it. MACD looking weak, struggling with the zero line. RSI turning lower from the trend line. I see only weakness... we need a spike lower.
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Hi Krasi,
ReplyDeleteWhat's your thoughts on Gold after sharp price drop last wee?
Thanks
Neel
Gold is near to 9 month(40 week) cycle low. I think we will see lower low with divergences before reversal higher. Than it should move 2-3 months higher, but I am skeptical that we will see strong rally with higher highs above 1400.
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