Loading...
Most Recent Stories

GOLDMAN SACHS: TIME FOR CAUTION ON COMMODITIES

Credit Suisse isn’t the only firm calling for a more rational approach to markets.  John Noyce, Goldman’s trading desk technician says there are signs of a peak in the commodity complex (via Hedge Analyst):
  • The Index has been above its 55-dma for an extreme, 101 consecutive  daily  closes.  Gold  and  Silver  managed  105 and 104  respectively  before  they  closed  back  below  the 55-dma. The %age the 55-dma stands above the 200-dma is also pretty “excessive”.
  • Looking  back  over  the  past  decade,  these  are  very extreme setups, but  is worth noting that the CRB doesn’t  have  the  same  track  record of  filling  the gap  to  the 200-dma  when  it  does  eventually  begin  to  correct  lower  as  Gold and Silver do on an individual basis.
  • Overall,  some  clear  warnings  of  an  interim  peak developing  –  or  at  least  of  the market  being  stretched. But  ideally  some  further evidence  is needed,  like a close below the 55-dma at 319.47, before getting too excited.

Source: Goldman Sachs

Please follow and like us:

Comments are closed.