Tuesday, 4 August 2015

ASX 200 rallies to trend line resistance on bearish MACDH divergence

Gold is poised to rally, according to (at least) four technical analysis measures

This post shows four technical measures favouring an impending rally for Gold. There are more bullish measures that I have not illustrated, such as extreme bearish sentiment. So yes, the trend is down, but a change of trend is on the cards.

Daily chart shows two technical measures favouring a rally. MACDH has ticked over to positive, and RSI has rallied from the oversold zone. Also I have illustrated a "triangle" that is being peddled by many as a reason to favour further lows. More on that later.

Weekly chart shows another measure favouring a rally, namely trend channel support.

The final bullish measure is illustrated on the 15 minute chart, namely a very bullish short term Elliott Wave count. This chart zooms in on the action that many regard as a "triangle". It is plainly not a triangle, as triangles subdivide in to 3 wave moves, not the bullish structure we see here, namely 5 wave rallies and 3 wave declines.