With gold recently firming and silver closing well above $30, the Godfather of newsletter writers was discussing the technical action in the gold market, “Gold — Let’s study gold from a technical analysis standpoint. Here we see the strong rally from August to November. Starting in November, gold moved sideways forming a rectangle. In January gold turned down and broke temporarily below the bottom of the rectangle.”
“Moving averages are often useful in technical analysis. For instance, here’s a picture of daily gold fitted on a 150-day moving average. This 150-day MA is interesting, because it has provided support for gold on every decline going back to March of 2009.
Most recently, gold has again touched the 150-day MA, and again gold has bounced off this MA. We look for change. Will the 150-day MA hold again, or will it be different this time? If the MA holds again, it will be another triumph for technical analysis by way of the 150-day moving average.”
Richard Russell has always excelled by looking at the big picture. His technical review was just that, a look at the big picture. Gold’s uptrend is still intact. Until proven otherwise, the rest is just noise.
Full article here: King World News