XLP retains it’s status as a leading bear sector in the US market. At the moment, moving averages, price action and chart pattern paint a bearish reversal setup. 1) Moving average dead cross. 2) Bearish expansion in January terminates last 4 quarters of higher lows. 3) Fallen out of equidistant channel.
This weekly chart of Zijin Mining (2899.hk) is an excellent example illustrating various technical analysis concepts: 1) Moving averages as a roadmap that provides direction, support. 2) Chart pattern reveals continuation (base building) or reversal. 3) Volume as an excellent companion of price movement.
4 moving average overlay on weekly chart shows DXY on downtrend over 3-6 months. Going long is a contrarian move that has to fight many resistance levels.
Stock indices continue to be bullish. DAX 30 is correcting, Nikkei 225 could be correcting soon. Until 13-week ema is broken, no reason for alarm.
Keeping an eye on gold miners Barrick Gold ABX, Newmont Mining NEM and Zijin Mining 2899. There is base building. We can see a base in each chart so this could lead to continuation.