Today I want to look to the charts and do some technical analysis of gold.
As always I look at a weekly Chart to draw my conclusions:
Figure 1. Weekly chart of the World Gold Index. The 50-week Moving Average is represented in blue and the the 100-week is in white. Arbitrary straight trend lines are also in white. Chart: FreeStockCharts
What we see in the chart is that prices went down for the better part of 2013, 2014 and 2015.
Then in 2016 the direction of the trend changed to move upwards where it moved during the first half of 2016.
But then after the American elections prices trended downwards. They did so for a couple of months until they changed direction again.
As can be seen in the chart, the prices are now up against the 50-week moving average, but because the moving average is not down trending I don’t believe that it will cause too much resistance.
That means that I believe that the prices will continue to the descending trend line above.
What happens then is anybody’s guess. It may be that the uptrend is so strong that it will cut through the descending trend line without problems.
Or it may be that the prices change direction once again and build up more tension than what is already present in the chart.
We will have to wait and see.
If you want to learn the basics of technical analysis you can do that here.
The post Technical Analysis of gold – Monday, February 27, 2017 appeared first on LJ Nissen's blog.
