Watch out for a Dead Cat Bounce
Following the devastating sharemarket plunge earlier this week, markets of course rallied in recovery. So was this crash just a blip, or is it part of something bigger?
We’d argue this was a well overdue correction for markets that are completely overvalued. And while optimists are jumping on the ‘Interest rate cuts will foster even more growth’, we’re a bit more realistic in our approach and are preparing for a little more pain before markets consolidate. It’s also important to note that the energy and money required to recover from any downwards market movement is substantially more.
Gold performed as expected, providing the immediate protection from the volatility of the sharemarket.
And looking closer at Gold’s pattern, we could well see further upwards momentum in the coming weeks.
Enjoy today’s forecasts.
Gold daily chart, with 200MDA
Silver daily chart, with 200MDA
US500, with 200MDA
ASX200, with 200MDA
Gold Futures Technical Analysis
Gold Futures monthly analysis continues to recommend a STRONG BUY with Weekly analysis a BUY signal.
Technical indicators – Monthly Projections
| RSI(14) | Buy |
| STOCH(9,6) | Buy |
| STOCHRSI(14) | Overbought |
| MACD(12,26) | Buy |
| ADX(14) | Buy |
| Williams %R | Overbought |
| CCI(14) | Buy |
| ATR(14) | Less Volatility |
| Highs/Lows(14) | Buy |
| Ultimate Oscillator | Buy |
| ROC | Buy |
| Bull/Bear Power(13) | Buy |
Summary for Monthly forecast: Strong Buy
*Not financial advice, please DYOR prior to any investment decisions you make.
