There are two basic trends in the GUR chart -- an upward sloping trend line (a) and a broadening pattern, delineated by lines b and c.
Looking a bit deeper into the broadening top, we see the down, up, down within the triangle. Most importantly, we see the 200 day EMA has proved to be technically very important, providing support. Note that prices are currently right at this important technical level.
The short-term EMA picture is turning negative. All the shorter EMAs are moving lower, the 10 day EMA has moved through the 50 day EMA and the 20 day EMA is about to move lower. Also note the volume spike at the 200 day EMA.
a.) Momentum is decreasing but
b.) We haven't seen a huge flight from the security.
2 comments:
If the world remains complacent, soon all of the momentum could be down as round 2 of the financial crisis crashes in on the fragile economic recovery as Greece falls into bankruptcy. Right now, America looks the other way as terrorism and the oil spill overshadows the Euro Zone crisis.
I don't necessarily see what America can do about it. It is up to the IMF and Euro countries to deal with it.
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