Tuesday, 24 June 2014

Dow long term chart shows bearish divergences on MACDH and RSI

Monthly chart shows bearish divergences on MACDH and RSI, indicating that the Dow's rally is losing momentum.


Those divergences support the idea that the Dow is tracing out a giant bearish megaphone pattern, and is setting up for a decline to below the 2009 low. As discussed yesterday, a move below last week's low would indicate a false break above the upper megaphone trend line.


Gold rallying, watch potential resistance around 1330 then 1370

Daily chart shows Gold today hitting new highs in its current rally. It also illustrates potential resistance at the April high, around 1330.


Zooming out to the weekly chart shows that the area around 1330 coincides with potential resistance at the trend line drawn from the late 2012 peak. If the market clears that level, the next hurdle will be around 1370, at the trend line drawn from the two most recent meaningful peaks.