Friday, December 23, 2016

12/16/16 #GoldShares Chart $GDX #Free

Gold Shares Chart
Those that view the message of the market on daily basis are likely confused by trading noise. While trading noise contributes to the long-term trends, it does not define them. Human behavior tries to explain trading noise as a meaningful trend. This confuses the majority which, in turn, contributes to their role as bagholders of trend transitions.

Gold Shares' overall trend, revealed by trends of price, leverage, and time, are define and discussed below for subscribers.

Subscriber Comments

Chart 1

A weekly close below 18.85 supports the bear phase, while a close above resistance from 21.01 to 22.96 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.

Message of Caution to Bears

Bullish divergences between price and advance-decline percent (breadth), often a technical setup that often leads powerful short-covering rallies or trend transitions, advises risk reduction into weakness for the bears until reversed (chart 2).

Chart 2


Market-driven money flow, trend, and intermarket analysis is provided by an Insights key.