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Notice the following on the weekly chart:
-- Prices have dropped by 50% or more over the last few months
-- All the SMAs are moving lower
-- The shorter SMAs are below the longer SMAs
-- Prices are below all the SMAs
-- Prices are at or near their lowest level in over three years
BUT
-- The MACD is oversold, and
-- The RSI is oversold
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Notice the following on the daily chart:
-- Prices have been dropping for four+ months
-- All the SMAs are moving lower
-- The shorter SMAs are below the longer SMAs
-- Prices are right at the lowest SMAs
BUT
-- The MACD is rising, and
-- The RSI has moved above the oversold level
Bottom line: the technical indicators on both charts tell us a rally is possible. But the fundamental picture is still very dour -- there is continual talk of deflation and recession. This adds to the downward pressure on prices (and with good reason).
