This chart shows the reason why we are being shorted.
The Ichimoku indicator shows GXY is way overbought. The evidence is in the distance between the current trading candle & the top of the Kumo. Even though the RSI is only 73.
Markets are always trying to find equilibrium & will go from oversold to overbought. As an example a stable SP will have the SP trading just above the Kumo inside the parallel channel, as showing on my chart.
The RSI is showing a "bearish convergence". The peaks on the RSI get lower & lower as the corresponding peaks on the candle sticks get higher & higher. This means the current uptrend is weak, yet more evidence of an overbought market.
Overall conclusion? Two things can happen over the LT. (coming months)
1. The SP will trade down to the Kumo to bring the market back into equilibrium. (I doubt it)
2. The market will trade sideways until the Kumo & SP are more in sync.
IMO, DYOR
GXY Price at posting:
$4.13 Sentiment: Buy Disclosure: Held
