Bit misleading headline - absolute 2008 support is to be reached...but it is quite close to it. With this the ETF traded with the highest ever volume for 2 weeks now. The price formed a small bottom for the moment not only on the weekly, but daily and monthly charts as well. It is still a risky trade, but the following points make it an attractive trade
1) The volume shows that there are sellers and buyers. And the direction of the weekly and daily seem to show a change of the short term trend
2) The technicals on the weekly are in the oversold. Some show a possibility of a trend change. RSI CCI Fisher and MACD showing a potential rounding, while VixFix signed green bars, and the last one was smaller than the penultimate
3) 2008 support is quite close and this level is quite important. Price bounced of a support of a recent yearly trend and the upper range is 30% away from the current point
4) On the daily chart one can see positive divergence on CCI and Fisher regarding the bottoms.
5) On the monthly chart there is a positive divergence of the price in regards to several indicators. CCI, RSI, Fisher, probably all other as well, but the price marked a lower low.
6) A small news related point - Russia seemed to increase its gold by 25%. I can imagine a scenario of increasing geopolitical destabilization that will cause market fear, and gold to run.
Contra is that short term MAs are still pointing down and price is not above mid Bollinger, but the bands are aiming at contracting. First goal to clear is the previous month top of 21.24
Props to CosmicDust for bringing the chart to my attention.
1) The volume shows that there are sellers and buyers. And the direction of the weekly and daily seem to show a change of the short term trend
2) The technicals on the weekly are in the oversold. Some show a possibility of a trend change. RSI CCI Fisher and MACD showing a potential rounding, while VixFix signed green bars, and the last one was smaller than the penultimate
3) 2008 support is quite close and this level is quite important. Price bounced of a support of a recent yearly trend and the upper range is 30% away from the current point
4) On the daily chart one can see positive divergence on CCI and Fisher regarding the bottoms.
5) On the monthly chart there is a positive divergence of the price in regards to several indicators. CCI, RSI, Fisher, probably all other as well, but the price marked a lower low.
6) A small news related point - Russia seemed to increase its gold by 25%. I can imagine a scenario of increasing geopolitical destabilization that will cause market fear, and gold to run.
Contra is that short term MAs are still pointing down and price is not above mid Bollinger, but the bands are aiming at contracting. First goal to clear is the previous month top of 21.24
Props to CosmicDust for bringing the chart to my attention.
