Commodities Countdown

Gold Stalls, Miners Underperform, Caution Once Again!

Greg Schnell

Greg Schnell

Chief Technical Analyst, Osprey Strategic

Gold is at a major inflection point on the chart. Technicians of all persuasions will be checking out this chart.


However, there are multiple technical views of the same chart. The RSI on the following chart suggests Gold is back in a bear market. The RSI is at the top level (~60) for a bear market rally. The MACD right at zero doesn't give us any clues.

Secondly, a more bullish view shows a typical major base setting up with the head and shoulders base. 

The bottom line is the Gold chart could rarely be at such a major inflection point. One of my primary indicators is the GDX:GLD ratio. Today this ratio broke down, so I am back on a sell signal. No breakout yet! Arrgh!

Be sure to check out the Commodities Countdown 2017-04-20 video. I packed a lot of information in it. I think you'll agree the commodities look in serious trouble and the world abounds with resistance.

Good trading,
Greg Schnell, CMT, MFTA.

 
Greg Schnell
About the author: , CMT, MFTA is Chief Technical Analyst at Osprey Strategic specializing in intermarket and commodities analysis. He is also the co-author of Stock Charts For Dummies (Wiley, 2018). Based in Calgary, Greg is a board member of the Canadian Society of Technical Analysts (CSTA) and the chairman of the CSTA Calgary chapter. He is an active member of both the CMT Association and the International Federation of Technical Analysts (IFTA). Learn More