Death Cross Chart Pattern - Gold
מעודכן
A death cross occurs when the 50-day moving average crosses below the 200-day moving average.
In addition we can observe the weekly EMA ribbon directly on support:
Occasionally this is a setup, but if price falls below the ema ribbon that is considered very bearish - particularly on a weekly time frame.
Additional Clarity offered on the death cross here:
Keep in mind as well that an ounce of gold now costs .03~ bitcoin! Chart will be provided below.
It is also worth stating that Bitcoins market cap is now 975.2B. If we exceed 1.5T Bitcoins market cap will have surpassed silver which one could then assume the next runup will be targeting superseding Golds dominance.
The other issue gold has to contend with is optimism from the broader market that as the nation opens back up, and consumers flush with cash we may see, and hopefully so, a broad economic recovery. The irony, and a strength for gold though is that the formula for inflation is M2*V=inflation. We all know that M2 has gone significantly higher, unprecedently higher. Velocity has been more than muted, it has been crushed. I would argue (and may get some counterpoints shooting me down, and I welcome the debate) that as the nation opens back up, we will see an increase in spending and activity and dare I say traveling and vacationing, home improvements, acquisitions of new homes to take advantage of low rates - which will heat up the economy & increase velocity. If velocity increases enough we could see a nice pop in inflation - not calling for hyper inflation, but even a conservative pop could work wonders for gold.
Keep in mind that retail sales increased 5.3% in January which is indicative that those stimulus checks are indeed being put to work. https://www.marketwatch.com/story/u-s-retail-sales-leap-5-3-in-january-as-stimulus-checks-help-to-boost-economy-11613570175?mod=economy-politics
Pivot Points for Gold Targets:
There is a lot to weigh out when one considers longing gold, but for now gold appears to be in a position where the gold bears have taken over, and the gold bugs are fighting for support.
If you enjoy this chart please be sure to like it! If you see things differently I respect your opinion and would love to learn from it! Please be sure to comment and tell me why I may be wrong.
And as always friends I wish you nothing but good fortunes and great success!
In addition we can observe the weekly EMA ribbon directly on support:
Occasionally this is a setup, but if price falls below the ema ribbon that is considered very bearish - particularly on a weekly time frame.
Additional Clarity offered on the death cross here:
- This death cross indicates, according to technical analysis, that the short term trend (50day) has fallen under the long term trend (200day).
- Treasury Yields are indicating the dollar may rise higher, and as those of us who have been observing the increase in the US Dollar see - a bullish DXY is a bearish signal typically for gold.
- The 10Y hit its highest level today since Feb of 2020 (which was pre-covid mania)
- This is because owning bonds offering a yield is preferable vs a commodity that does not offer yield. The Yield in Treasuries is direct competition with gold - along now with the new powerhouse on the block Bitcoin.
Keep in mind as well that an ounce of gold now costs .03~ bitcoin! Chart will be provided below.
It is also worth stating that Bitcoins market cap is now 975.2B. If we exceed 1.5T Bitcoins market cap will have surpassed silver which one could then assume the next runup will be targeting superseding Golds dominance.
The other issue gold has to contend with is optimism from the broader market that as the nation opens back up, and consumers flush with cash we may see, and hopefully so, a broad economic recovery. The irony, and a strength for gold though is that the formula for inflation is M2*V=inflation. We all know that M2 has gone significantly higher, unprecedently higher. Velocity has been more than muted, it has been crushed. I would argue (and may get some counterpoints shooting me down, and I welcome the debate) that as the nation opens back up, we will see an increase in spending and activity and dare I say traveling and vacationing, home improvements, acquisitions of new homes to take advantage of low rates - which will heat up the economy & increase velocity. If velocity increases enough we could see a nice pop in inflation - not calling for hyper inflation, but even a conservative pop could work wonders for gold.
Keep in mind that retail sales increased 5.3% in January which is indicative that those stimulus checks are indeed being put to work. https://www.marketwatch.com/story/u-s-retail-sales-leap-5-3-in-january-as-stimulus-checks-help-to-boost-economy-11613570175?mod=economy-politics
Pivot Points for Gold Targets:
There is a lot to weigh out when one considers longing gold, but for now gold appears to be in a position where the gold bears have taken over, and the gold bugs are fighting for support.
If you enjoy this chart please be sure to like it! If you see things differently I respect your opinion and would love to learn from it! Please be sure to comment and tell me why I may be wrong.
And as always friends I wish you nothing but good fortunes and great success!
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