Today's Chart of the Day was shared on Twitter by Michael Kahn (@mnkahn). It's a daily bar chart of Gold over the past year. Gold has had a terrific run this year and is actually outperforming the S&P 500 year-to-date. Michael notes that it may be a good time to "ease up on the gas" because the chart is showing a bearish RSI divergence as well as a reversal pattern. A bearish RSI divergence occurs when price makes a new high while RSI fails to make a new high. In addition to the reasons Michael laid out, sentiment on Gold is beginning to reach extremely bullish levels, which is actually a bearish sign that the trade is crowded. We've been bullish on Gold and think that this is potentially the beginning of a bull market in Precious Metals. However, in the short-term, Gold looks like it needs some time to cool off and digest its recent gains.
Chart of the Day - Tuesday, August 13th 2019
August 13, 2019
