Gold In Warning Phase

Gold price has fallen back to January 09 levels as seen in the price action of SPDR Gold Shares.

It is currently in “Warning” phase with the price stuck between its 200 day and 50 day moving average.

In April trading, the price of SPDR Gold Shares bounced off its 200 day moving average twice. It looks set to test it again with a downward sloping 50 day moving average.

For the bears, a good opportunity will be to short gold when it goes below its 200 day moving average. For the bulls, they will be looking at a break away from the 50 day moving average as confirmation of the continuation of the uptrend.

STI Update

STI continued its bull run and is now at 1896 level. The index has stayed 19 trading days in “Recovery” mode. The index is showing some fatigue as it approaches its 200 day moving average of 2075.

Similar pattern is seen in US market with the Dow Jones Industrial Average ascent slowing down as it approaches its 200 day moving average of 9230.

The pullback if it happens will tell us whether this is a bear rally or beginning of a bull run.