Monday, June 8, 2009

GOLD daily chart - 08.06.2009



Gold has been a trendy asset as I have seen multiple sources say it is the only store of wealth in the coming hyper-inflation. Well, I'm not that smart to divine the future.

Anyway technically I see it falling.

First there is the present configuration of 5 consequent down-up-down-up-down days.
The range is expanded each day while the highs have a flat line - similar to the Tweezer Top candle pattern. I see he first indication of a fall in closing below the 13 MVA as it supported the rise from the start of May.

RSI is close to crossing the 50 level and thus close to supporting the correction theme.
ADX which I favor as a trend indicator of choice tells me the Uptrend not only lost its steam but also there is impending DI+ cross down the DI- - a signal of going Short.

I would be watching with interest the 920 level for signs of an easy penetration which would open a gap towards 880 where I anticipate to see the 200 MVA in the coming days.

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