Bullion Basing?
While the rest of the commodity markets have been grabbing the headlines lately, you would have been forgiven for forgetting about the precious metals markets, however these now need to go back on your radar as we suspect that they are in the throes of basing. While we need more evidence to confirm, we would at least suggest that these deserve more attention.
More specifically Platinum, Palladium and Silver. Palladium and Platinum have recently stabilised at their respective 200-week moving averages and platinum a couple of weeks ago even charted a key week reversal. A key week reversal is a trend reversal pattern – in fact these tend to work well so I would upgrade that statement to these are one of the more important reversal patterns to watch out for. In a downtrend, the price hits a new low but then closes ABOVE the previous week’s highs.
The reason why I watch specifically the 55 week and 200 week moving averages and in fact watch the 55 and 200 daily and monthly period ones as well, is that as a 35 year veteran I have noticed that markets tend to mean revert to their long term moving averages particularly when markets are volatile. I have seen many times that markets move to and reverse from these moving averages and used in a simplistic way; while above these moving averages the trend is up, while below we can assume a negative tone.
Also 55 weeks is virtually one-year and 200-week equates to approximately 4-years and they act as a medium- and long-term barometer of trend. So why not 50 or 52 week – because 55 is a Fibonacci number and I am a big fan of Fibonacci.
https://en.wikipedia.org/wiki/Fibonacci_number
But when we see Platinum perform a key week reversal AND break above its 55-day ma AND Palladium reverse ahead of its 200-week ma AND silver reverse ahead of a multi-year pivot it is time to pay attention
Disclaimer:
The information posted on Trading View is for informative purposes and is not intended to constitute advice in any form, including but not limited to investment, accounting, tax, legal or regulatory advice. The information therefore has no regard to the specific investment objectives, financial situation or particular needs of any specific recipient. Opinions expressed are our current opinions as of the date appearing on Trading View only. All illustrations, forecasts or hypothetical data are for illustrative purposes only. The Society of Technical Analysts Ltd does not make representation that the information provided is appropriate for use in all jurisdictions or by all Investors or other potential Investors. Parties are therefore responsible for compliance with applicable local laws and regulations. The Society of Technical Analysts will not be held liable for any loss or damage resulting directly or indirectly from the use of any information on this site.
While the rest of the commodity markets have been grabbing the headlines lately, you would have been forgiven for forgetting about the precious metals markets, however these now need to go back on your radar as we suspect that they are in the throes of basing. While we need more evidence to confirm, we would at least suggest that these deserve more attention.
More specifically Platinum, Palladium and Silver. Palladium and Platinum have recently stabilised at their respective 200-week moving averages and platinum a couple of weeks ago even charted a key week reversal. A key week reversal is a trend reversal pattern – in fact these tend to work well so I would upgrade that statement to these are one of the more important reversal patterns to watch out for. In a downtrend, the price hits a new low but then closes ABOVE the previous week’s highs.
The reason why I watch specifically the 55 week and 200 week moving averages and in fact watch the 55 and 200 daily and monthly period ones as well, is that as a 35 year veteran I have noticed that markets tend to mean revert to their long term moving averages particularly when markets are volatile. I have seen many times that markets move to and reverse from these moving averages and used in a simplistic way; while above these moving averages the trend is up, while below we can assume a negative tone.
Also 55 weeks is virtually one-year and 200-week equates to approximately 4-years and they act as a medium- and long-term barometer of trend. So why not 50 or 52 week – because 55 is a Fibonacci number and I am a big fan of Fibonacci.
https://en.wikipedia.org/wiki/Fibonacci_number
But when we see Platinum perform a key week reversal AND break above its 55-day ma AND Palladium reverse ahead of its 200-week ma AND silver reverse ahead of a multi-year pivot it is time to pay attention
Disclaimer:
The information posted on Trading View is for informative purposes and is not intended to constitute advice in any form, including but not limited to investment, accounting, tax, legal or regulatory advice. The information therefore has no regard to the specific investment objectives, financial situation or particular needs of any specific recipient. Opinions expressed are our current opinions as of the date appearing on Trading View only. All illustrations, forecasts or hypothetical data are for illustrative purposes only. The Society of Technical Analysts Ltd does not make representation that the information provided is appropriate for use in all jurisdictions or by all Investors or other potential Investors. Parties are therefore responsible for compliance with applicable local laws and regulations. The Society of Technical Analysts will not be held liable for any loss or damage resulting directly or indirectly from the use of any information on this site.
The STA is the oldest technical analysis organisation in the world and to celebrate that fact, we have a free downloadable book on technical analysis here -
www.technicalanalysts.com
www.technicalanalysts.com