Friday, August 7, 2009
The weekly chart shows the strength of the downtrend -- even when the dollar made a second top both the MACD and RSI printed lower. Also note that prices consolidated in a triangle pattern as they fell and then moved lower. Finally, the 10, 20 and 50 day EMA are all moving lower, the shorter EMAs are below the longer EMAs and prices are below all the EMAs.
The daily chart shows the consolidation and fall in more detail. Notice the triangle consolidation pattern followed by the move lower. Also note the EMA picture -- the shorter EMAs are below the longer EMAs, prices are below all the EMAs and all the EMAs are moving lower. Also note the 20 day EMA provided upside resistance for prices last week.
Bottom line -- this is a bearish chart.