GEOMETRY OF GOLD: WEEKLY: 21.02.2021

Three days ago the precious metal completed the death cross. The 100 MA crossed below the 200 MA. Now all significant moving averages are lined up in the most bearish stance: 8 EMA below 20 EMA, 20 EMA below 50 MA, 50 MA below 100 MA, and 100 MA below 200 MA. Of course there is always a chance of reversal, but I would say it is miniscule right now.

The Monthly, Weekly and Daily candles are aligned in a way that if any of them are closed below the November low – 1767.20 – during the next week, a further, possibly a multi-month downtrend would be confirmed. The closure on Friday – the end of week and month – would definitely be crucial.

If gold closes below 1767.20 next week, I would expect it to fall in the next several months to at least to 1700. The worst case – to 1450.

Below is a very long term projection that I first published in the middle of August 2020. It has not changed since and I am patiently waiting for the February month end.

One thought on “GEOMETRY OF GOLD: WEEKLY: 21.02.2021

  1. Great analysis. Charts are a little difficult to read because the numbers are so small. Please use red for the 50 sma, not yellow! Can’t see it.

    Dimon: Thank you for feedback. I will try larger fonts and a different color for 50 MA.

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