Bearish pennant signals short-term pain
Updated
* I AM NOT A FINANCIAL ADVISOR, DO YOUR OWN DUE DILIGENCE. I AM STRICTLY SHARING MY OPINION AND DO NOT PROVIDE FINANCIAL ADVICE*
Down-trending volume along with bearish pennant forming on the 1H chart as prices appear to be going up. Bearish signal confirmation via down-trending OBV, Stochastic Oscillator on slow settings, and CCI all forming lower highs and lower lows. MACD and RSI stagnant, with the latter unable to make higher lows or higher highs. This could mean the beginning of a sharp downtrend.
With 10Y treasury yields spiking due to market uncertainty and hyper-inflation fears looming, expect short term pain and a selloff as investors liquidate physical gold for quick cash on hand.
Long term, gold hits $2100-2500/oz conservatively by EOY.
Down-trending volume along with bearish pennant forming on the 1H chart as prices appear to be going up. Bearish signal confirmation via down-trending OBV, Stochastic Oscillator on slow settings, and CCI all forming lower highs and lower lows. MACD and RSI stagnant, with the latter unable to make higher lows or higher highs. This could mean the beginning of a sharp downtrend.
With 10Y treasury yields spiking due to market uncertainty and hyper-inflation fears looming, expect short term pain and a selloff as investors liquidate physical gold for quick cash on hand.
Long term, gold hits $2100-2500/oz conservatively by EOY.
Note
Waiting for confirmation via price drop under 20 SMA as well as doji candle formation/ large red-bodied candle formation. MACD and RSI lagging downward will fall in line with other indicators pointing downward.
And finally, ADX is ripe for DI-(red) crossing over DI+(green). This will be further solidified with ADX line (orange crossing into 20-25 range and beyond.
Both Treasury Secretary Yellen & Federal Reserve Chairman Powell claim there will be zero inflation, which is false. They are likely to downplay this reality much in the same way that President George W. Bush did in 2007-2008, only admitting that the then-recession was a reality while denying and outright downplaying the circumstances.
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