Loading ...Moving Averages
I was going to take a look at where we might expect gold price to drop to if we are indeed at the start of a new bull. After Redlabels post, I decided to have a look at how the 20 and 50 month simple moving averages behave. I’m happy to say that everything is progressing according to the script. 20 MSMA is somewhere around $1270 at the moment. Of course, as price rises above this, it will drag it upwards. Here’s how it looked at the start of the last bull in 2001…
and here’s how it’s looked over the last 16 years or so…
and for a close look at where we are right now…
Is there deep significance in the commodities (or maybe just PM) world to the selection of these MAs? Why 20 and 50? 20 and 50 Day SMAs work pretty well for support/resistance during a trend as may big traders watch them for adding to positions. Just curious 🙂
One thing that may interest use is that symbol GLD had a perfect simultaneous bounce from the 50 and 200 Week SMA in December… Lots of MAs all very close to each other usually means a big breakout is brewing 🙂
Thank you for your charts they are much appreciated!
agree Sir M ! Been too quiet the last year for big boom events like war, refugee crisis, terror, newspapers gotta hype and fear something soon, world hates good news ..
I thought you’d like that one NS. Maybe the big ship finally did turn? Should make it easier to make trades with a positive backdrop in play. The 50 MSMA did bottom in 87 93 & 2001, twice maybe in 86/87? We shall see how this plays out.
Thanks for your posts NS.
I like this post and your previous post which suggested that gold could possibly go as high as $30,000, my comment is,hey, if bitcoin can do it, why can’t gold ?