Waves.Gold - RSI momentum

This week we are revisiting RSI momentum, along with averages. Indicators on momentum is an attempt to build trade setups. We have a trade signal when RSI line crosses the shortest average and a confirmation of the move when the shortest average crosses the longest one.

This is a Constance Brown technique, which she has explained in her book ‘Technical Analysis for trading professionals’. While studying this setup we also keep in mind the position of RSI. In a bull market the RSI should not break below 40 levels and oscillate till 80 or above. In a bear market the indicator should break the 40 support, move till 25-35 and not move above the resistance at 55-65 levels.

Brown also insists on the time frame used for plotting price. A 3 day price chart plotted with a 14 period RSI should give important clues about the next move in the market. Experimenting with different averages on the RSI should increase the confidence of the trader and provide him a thorough opinion on the market.

Alpha.metals has been talking about an impending outperforming case on silver against gold. RSI and most momentum indicators are known to lead prices (they are built to lead). Silver RSI intermediate momentum has already broken down on 40 supports. This does not post an encouraging picture for gold supports at 1,000. The gold minor multi day view also suggests that RSI momentum might have got into bearish zone and bounce backs will be shallow.

Now that Bloomberg made Palladium officially the best metal, our negative case on Platinum and Palladium stands sentimentally valid. If it is news, bullish percentage is high. If bullish percentage is high, it is time to sell. We have carried anticipated and happened cases in the report. Next week is key for our bearish case on Gold. Sit tight.

ORPHEUS RESEARCH AT REUTERS - USA

WAVES.GOLD is a perspective product published on Tuesday and Thursday. The report highlights GOLD and other precious and base metals. The product highlights Primary (Multi Month) and Intermediate (Multi Week) price trends. The report illustrates key price levels, price targets, price projections and time turn windows. The product uses Elliott waves, traditional technical analysis tools, sentiment indicators and other alternative research tools like INTERMARKET to spot outperformers.

Performance cycles is a term coined by Orpheus Capitals. This is another name for time triads, time arbitrage, time fractals but expressed in terms of relative performance. It’s a bounded oscillator that moves in a range say from 1 to 30. 1 is top relative performance and 30 is worst performance. The idea is that performance is cyclical. A top performer will underperform in future and vice versa. A top relative performer is also the worst value pick and the top relative underperformer is the best value pick.

REUTERS RICS: XAU=, XAG=, XPT=, CU-NYC, .SPGSIZ, SPGSIA,.NSTL

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ORPHEUS RESEARCH AT REUTERS - UNITED KINGDOM

ORPHEUS RESEARCH AT REUTERS - USA

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