|Gold Shares Chart|
Gold Shares' overall trend, revealed by trends of price, leverage, and time, are define and discussed below for subscribers.
A weekly close below support from 21.07 to 23.02 supports the bear phase, while a close above resistance from 26.17 to 27.61 could reverse it. A reversal favors testing of higher resistance.
On Balance Volume (OBV), a crude measure of trend energy, has been lagging price since April. This negative divergence, an indication of distribution, is bearish until reversed. Gold shares advancing to declining issue and up to down volume, similar measure of accumulation/distribution, generated a bearish crossover in August (chart 2). The crossover introduces a bear phase for the gold shares, gold, and silver.
Bears' desire to chase, however, runs against the message of the market. Bullish divergences between price and advance-decline percent (breadth) often setup powerful short-covering rallies or trend transitions (chart 2). The bullish divergence which began in October continues to wide as price declines. This is a warning to the bears.
Market-driven money flow, trend, and intermarket analysis is provided by an Insights key.