Evening Wrap: ASX 200 snaps winning streak as markets swing risk-off in wake of Moody's US credit rating downgrade By Carl Capolingua
Mon 19 May 25, 5:59pm (AEST) ….. excerpt;
Gold Futures (Front month, back-adjusted) COMEX
Gold seems to be hanging onto the short term trend ribbon by a thread…and perhaps this is a generous conclusion given it has closed below the short term trend ribbon three times in the last three sessions (the last candle is live, so discount it).
I put to you that the short term trend ribbon is behaving more like a zone of dynamic supply than one of dynamic demand – a trait that was so characteristic of the preceding short term uptrend.
Really, only the low of Thursday’s downward pointing shadow (3123.3) stands in the way of total supply-side control.
If we close below there, we will set the all-important trough below the short term trend ribbon that confirms the transition to a short term downtrend.
But, as I am prone to do from time to time when circumstances warrant, I jumped the gun and called that transition in our last gold update in ChartWatch in the Evening Wrap on 15 May.
Gold might surprise me and claw its way back above the short term trend ribbon. In that case I will happily concede my error – and it will show gold’s demand-side has some substantial fight left in it yet.
I just don’t see it happening.
Nope, I suspect we have a date with the dynamic demand of the long term uptrend ribbon ahead of us here.
That trend remains credible, and I have no reason to think that we won’t see a strong demand-side showing there.
SPR Price at posting:
$1.98 Sentiment: Hold Disclosure: Held
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