I keep thinking gold has hit a top, it must be, but then as things continue on, it appears it may still be in stage 2. The dollar is falling, COVID flareups and the ramifications for people and businesses continues, however, the overall market indexes are all still above their 30 week moving averages. What is a cat to think?
I bought some of the Gold ETF in 2017 as a hedge. Didn't think too much of it and let it sit there as a rainy day investment. The question for me now is do I buy more or wait it out? In reviewing the chart, it looks like there is room for more advancement before GLD enters into stage 3. A stop loss is in order at $160. Note the resistance to move past is the $179 high in 2011. This week can be key to see if it can plow through that resistance line.
A ChartMill chart below, confirms gold is in stage 3. (ChartMill has Weinstein indicators).
The market continues to trade within a range. All my indicators remain in the positive.
I recently bought some BlackRock stock. Here is a screen from ChartMill showing how it is doing. It is 3 weeks into Stage 2 (see the bottom chart with the green bars). The Relative Strength is positive (see the middle chart), and the 30 week moving average (see the red line on the top chart) is positive and the close is above the line.
Chartmill is a great site to use for Mansfield indicators and scanners. You can sign up for free and buy credits too. I like to buy credits for scanning when I am looking for new opportunities. Here is a link to their documentation on Weinstein Indicators.
