A month ago, I noted that gold was getting its mojo back. Now, the precious metal is at a “prove it” point. The early action is encouraging...but I want to see follow through next!
Here’s a MoneyShow Chart of the Day showing gold futures so you can see what I’m seeing. Gold had its blow-off peak in January, and a multi-month consolidation afterward. Then in early August, it traded up through a downtrend line that dated back to the January high. That was followed by the rally I wrote about last month.
Gold Futures
Source: TradingView
Following THAT, gold pulled back on declining volume to horizontal support. Then it bounced off that level on heavy volume this week.
Gold is now wrestling with the 50-day and 200-day Exponential Moving Averages (EMAs). If this encouraging setup holds, and we rally from this base, it’ll be a strong signal that the longer-term bull market in bullion is intact.
That’s the way I’m leaning, just so it’s said. But technical confirmation is key if you’re trading the metals!
