Gold showing a rare & bearish MA pattern
Gold has a unique pattern in its daily Moving Averages
20 & 50 daily MA's are encapsulated within the 100 and 200, the short term ones are pointing down and they are all relatively equidistant. From what I can see this has only really happened a few times.
April 1996 and it signaled a 3 year bear market with a 35% slide
Happened twice in 2011 and 2013 after gold had peaked. The first example set up sideways price action and the second setup a drop of 28% 6 months later.
2018 less of a clear signal but price was 7% lower 9months later
May 2008 price dropped 20% six months later
Dec 1980 set up a year and a half long slide of nearly 50%
Also in every single case this daily MA pattern preceded a bearish weekly crossover by a couple months
1980
1996
2008
2011/12
2018
I'm not short gold here. Certainly the price action could change. But that pattern does seem to have a historic signal into a bear market. I will watch for the 20MA to cross the 200 on th daily.
20 & 50 daily MA's are encapsulated within the 100 and 200, the short term ones are pointing down and they are all relatively equidistant. From what I can see this has only really happened a few times.
April 1996 and it signaled a 3 year bear market with a 35% slide
Happened twice in 2011 and 2013 after gold had peaked. The first example set up sideways price action and the second setup a drop of 28% 6 months later.
2018 less of a clear signal but price was 7% lower 9months later
May 2008 price dropped 20% six months later
Dec 1980 set up a year and a half long slide of nearly 50%
Also in every single case this daily MA pattern preceded a bearish weekly crossover by a couple months
1980
1996
2008
2011/12
2018
I'm not short gold here. Certainly the price action could change. But that pattern does seem to have a historic signal into a bear market. I will watch for the 20MA to cross the 200 on th daily.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.