Gold: The Battleground
Richard Russell Snippet
...Next, a few words about gold.
The chart below suggests that
gold advanced too far above its 200-day moving average (red line)
and is now in the process of correcting. The histograms (blue
columns) at the bottom of the chart are fading (turning lower),
telling me that the pressure on gold is to the downside.
If gold over the coming weeks (months?) can hold at or near 400 I would consider it a bullish accomplishment. In the meantime, gold has broken below its 50-day moving average but is holding above its 200-day MA, which today stands at 381. As a rule, a 200-day MA will offer support in a bull market. Thus, the best I expect is gold to hold around the current area while its 200-day MA climbs slowly higher.
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