Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
Stock Market Brief in Count Down to US Election Result 2024 - 3rd Nov 24
Gold Stocks’ Winter Rally 2024 - 3rd Nov 24
Why Countdown to U.S. Recession is Underway - 3rd Nov 24
Stock Market Trend Forecast to Jan 2025 - 2nd Nov 24
President Donald PUMP Forecast to Win US Presidential Election 2024 - 1st Nov 24
At These Levels, Buying Silver Is Like Getting It At $5 In 2003 - 28th Oct 24
Nvidia Numero Uno Selling Shovels in the AI Gold Rush - 28th Oct 24
The Future of Online Casinos - 28th Oct 24
Panic in the Air As Stock Market Correction Delivers Deep Opps in AI Tech Stocks - 27th Oct 24
Stocks, Bitcoin, Crypto's Counting Down to President Donald Pump! - 27th Oct 24
UK Budget 2024 - What to do Before 30th Oct - Pensions and ISA's - 27th Oct 24
7 Days of Crypto Opportunities Starts NOW - 27th Oct 24
The Power Law in Venture Capital: How Visionary Investors Like Yuri Milner Have Shaped the Future - 27th Oct 24
This Points To Significantly Higher Silver Prices - 27th Oct 24
US House Prices Trend Forecast 2024 to 2026 - 11th Oct 24
US Housing Market Analysis - Immigration Drives House Prices Higher - 30th Sep 24
Stock Market October Correction - 30th Sep 24
The Folly of Tariffs and Trade Wars - 30th Sep 24
Gold: 5 principles to help you stay ahead of price turns - 30th Sep 24
The Everything Rally will Spark multi year Bull Market - 30th Sep 24
US FIXED MORTGAGES LIMITING SUPPLY - 23rd Sep 24
US Housing Market Free Equity - 23rd Sep 24
US Rate Cut FOMO In Stock Market Correction Window - 22nd Sep 24
US State Demographics - 22nd Sep 24
Gold and Silver Shine as the Fed Cuts Rates: What’s Next? - 22nd Sep 24
Stock Market Sentiment Speaks:Nothing Can Topple This Market - 22nd Sep 24
US Population Growth Rate - 17th Sep 24
Are Stocks Overheating? - 17th Sep 24
Sentiment Speaks: Silver Is At A Major Turning Point - 17th Sep 24
If The Stock Market Turn Quickly, How Bad Can Things Get? - 17th Sep 24
IMMIGRATION DRIVES HOUSE PRICES HIGHER - 12th Sep 24
Global Debt Bubble - 12th Sep 24
Gold’s Outlook CPI Data - 12th Sep 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Gold Retains Bullish Rating Despite Weeks Lackluster Performance

Commodities / Gold & Silver 2009 Jun 27, 2009 - 06:44 PM GMT

By: Merv_Burak

Commodities

Best Financial Markets Analysis ArticleGold tried to rally during the week but the overall action was not too impressive.  I guess the world is just not ready yet to collapse into ruin.  Individuals, well that’s a different story.


GOLD

For the next few weeks the commentaries will be short.  It’s the vacation/gardening/beer guzzling period with a few weenies and burgers, even a steak or two, thrown in for good measure.

LONG TERM

Nothing during the week has changed the basic long term position.  Gold price remains above its positive sloping long term moving average line and the momentum indicator remains in its positive zone (using the daily data version).  The momentum is, however, still slightly below its negative trigger line.  As for the volume indicator, it remains positive and above its positive trigger line.  Nothing during the week caused a change in rating, therefore the rating remains BULLISH.

INTERMEDIATE TERM

The price of gold moved below its intermediate term moving average line for a few days this past week but ended above the line by Friday’s close.  However, Friday’s action could be perceived as a reversal day so I would not get complacent about the price being above the moving average line.  The moving average remained in a positive slope throughout, which is still a positive sign.  The momentum indicator has remained in its positive zone all week but below its negative trigger line.  It did move above the trigger on Friday but the slope of the trigger line remained downward.  As for the volume indicator, it continues to trend higher but has not yet breached its previous high reached in late May.  Still all things considered, the intermediate term rating remains BULLISH.

SHORT TERM

We have been in a decline for a few weeks now but during this past week things firmed up somewhat.  The price of gold closed the week above its short term moving average line but the line still has not reversed its slope to the up side.  The momentum indicator has been toying with its neutral line but closed the week just a shade below the line in the negative zone.  It is, however, above its positive sloping trigger line which counts for something.  Throughout the recent price decline the daily volume action had been diminishing, which is usually an encouraging sign.  However, on the recent up days the daily volume did not improve.  Now this could be just that many speculators are taking early leave for the July 1st and July 4th holidays so we’ll just have to wait until the holidays are over and see if the volume comes back.  In the mean time the short term rating has improved from last week. It is now at a + NEUTRAL rating, one step below a bullish rating.

          

As for the immediate direction of least resistance, well baring any surprises on the global political/economic scene, I expect that to be in the lateral to downside direction.  The Stochastic Oscillator is almost into its overbought zone while the Friday action has the looks of a reversal of direction sign.  The Friday candlestick is what is sometimes referred to as a “long upper shadow” (I don’t make these things up).  It is often a negative sign so we’ll have to see how this develops.

SILVER

During the week gold ended up a little while silver ended down a little.  The difference being the degree of the Monday drop and subsequent slow recovery.  This difference in performance resulted in silver intermediate term rating diminishing from its previous bullish rating.  The silver price finished the week below its intermediate term moving average line.  Although the line is still very slightly positive the lower close did change the rating to a – NEUTRAL rating.  Confirming the rating reduction was the move by the short term moving average line below the intermediate term line.  This normally results in further down side action by the price.

As one can expect, the short term rating remained BEARISH as nothing happened during the week to change that.

PRECIOUS METAL STOCKS

Wouldn’t you just know it?  No sooner do I complete the development of that new Penny Arcade Index (shown last week), which showed a spectacular Index advance since the end of last year (up almost 500%) but the Index takes a dive for two weeks in a row, up to this point.  I guess what goes up must come down, especially if you are a pure speculation or gamble.

This past week we saw a divergence in performance between the higher quality stocks and the lower quality ones.  While the major North American Indices and the higher quality Merv’s Indices had a relatively good week the dogs did not.  The Gamb-Gold Index and the Penny Arcade Index were the only North American Indices to move lower this past week.  The new McEwen Junior Gold Index (not yet part of the Table) ended the week with a weekly decline of 6.07%, however, this is due to the method of Index calculation.  The AVERAGE price of a component stock declined only 1.00%.  Still the higher quality were the winners this past week.

Merv’s Precious Metals Indices Table

Well, that will be it for this week.

By Merv Burak, CMT
Hudson Aero/Systems Inc.
Technical Information Group
for Merv's Precious Metals Central

For DAILY Uranium stock commentary and WEEKLY Uranium market update check out my new Technically Uranium with Merv blog at http://techuranium.blogspot.com .

During the day Merv practices his engineering profession as a Consulting Aerospace Engineer. Once the sun goes down and night descends upon the earth Merv dons his other hat as a Chartered Market Technician ( CMT ) and tries to decipher what's going on in the securities markets. As an underground surveyor in the gold mines of Canada 's Northwest Territories in his youth, Merv has a soft spot for the gold industry and has developed several Gold Indices reflecting different aspects of the industry. As a basically lazy individual Merv's driving focus is to KEEP IT SIMPLE .

To find out more about Merv's various Gold Indices and component stocks, please visit http://preciousmetalscentral.com . There you will find samples of the Indices and their component stocks plus other publications of interest to gold investors.

Before you invest, Always check your market timing with a Qualified Professional Market Technician

Merv Burak Archive

© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in