Gold Price Probable Short-term Bounce
Commodities / Gold and Silver 2018 Jul 03, 2018 - 08:20 PM GMTBy: Troy_Bombardia
Gold and silver have been getting crushed recently along with emerging market stocks.
Gold’s daily RSI (a contrarian indicator) is the most oversold its been since late-2016.
RSI is a relatively useful short term indicator for gold. Golds tends to make a short term bounce when it gets as oversold as it is right now.
Here’s what happens next to gold when its daily RSI falls below 23 for the first time in 6 months (such as right now).
Click here to download the data in Excel
Conclusion
As you can see, gold tends to bounce in the short term (next 2 months) when its RSI gets as low as it is now. Hence, this study suggests that gold’s short term outlook right now is bullish.
Gold’s seasonality also turns bullish starting in July.
Click here for more market studies
By Troy Bombardia
I’m Troy Bombardia, the author behind BullMarkets.co. I used to run a hedge fund, but closed it due to a major health scare. I am now enjoying life and simply investing/trading my own account. I focus on long term performance and ignore short term performance.
Copyright 2018 © Troy Bombardia - All Rights Reserved
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.
Troy_Bombardia Archive |
© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.
