Best of the Week
Most Popular
1. TESLA! Cathy Wood ARK Funds Bubble BURSTS! - 12th May 21
2.Stock Market Entering Early Summer Correction Trend Forecast - 10th May 21
3.GOLD GDX, HUI Stocks - Will Paradise Turn into a Dystopia? - 11th May 21
4.Crypto Bubble Bursts! Nicehash Suspends Coinbase Withdrawals, Bitcoin, Ethereum Bear Market Begins - 16th May 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.Cathy Wood Ark Invest Funds Bubble BURSTS! ARKK, ARKG, Tesla Entering Severe Bear Market - 13th May 21
7.Stock Market - Should You Be In Cash Right Now? - 17th May 21
8.Gold to Benefit from Mounting US Debt Pile - 14th May 21
9.Coronavius Covid-19 in Italy in August 2019! - 13th May 21
10.How to Invest in HIGH RISK Tech Stocks for 2021 and Beyond - Part 2 of 2 - 18th May 21
Last 7 days
US Economy and Stock Market Addicted to Deficit Spending - 17th Oct 21
The Gold Price And Inflation - 17th Oct 21
Went Long the Crude Oil? Beware of the Headwinds Ahead… - 17th Oct 21
Watch These Next-gen Cloud Computing Stocks - 17th Oct 21
Overclockers UK Custom Built PC 1 YEAR Use Review Verdict - Does it Still Work? - 16th Oct 21
Altonville Mine Tours Maze at Alton Towers Scarefest 2021 - 16th Oct 21
How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
The Only way to Crush Inflation (not stocks) - 14th Oct 21
Why "Losses Are the Norm" in the Stock Market - 14th Oct 21
Sub Species Castle Maze at Alton Towers Scarefest 2021 - 14th Oct 21
Which Wallet is Best for Storing NFTs? - 14th Oct 21
Ailing UK Pound Has Global Effects - 14th Oct 21
How to Get 6 Years Life Out of Your Overclocked PC System, Optimum GPU, CPU and MB Performance - 13th Oct 21
The Demand Shock of 2022 - 12th Oct 21
4 Reasons Why NFTs Could Be The Future - 12th Oct 21
Crimex Silver: Murder Most Foul - 12th Oct 21
Bitcoin Rockets In Preparation For Liftoff To $100,000 - 12th Oct 21
INTEL Tech Stock to the MOON! INTC 2000 vs 2021 Market Bubble WARNING - 11th Oct 21
AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
Stock Market Wall of Worry Meets NFPs - 11th Oct 21
Stock Market Intermediate Correction Continues - 11th Oct 21
China / US Stock Markets Divergence - 10th Oct 21
Can US Save Taiwan From China? Taiwan Strait Naval Battle - PLA vs 7th Fleet War Game Simulation - 10th Oct 21
Gold Price Outlook: The Inflation Chasm Between Europe and the US - 10th Oct 21
US Real Estate ETFs React To Rising Housing Market Mortgage Interest Rates - 10th Oct 21
US China War over Taiwan Simulation 2021, Invasion Forecast - Who Will Win? - 9th Oct 21
When Will the Fed Taper? - 9th Oct 21
Dancing with Ghouls and Ghosts at Alton Towers Scarefest 2021 - 9th Oct 21
Stock Market FOMO Going into Crash Season - 8th Oct 21
Scan Computers - Custom Build PC 6 Months Later, Reliability, Issues, Quality of Tech Support Review - 8th Oct 21
Gold and Silver: Your Financial Main Battle Tanks - 8th Oct 21
How to handle the “Twin Crises” Evergrande and Debt Ceiling Threatening Stocks - 8th Oct 21
Why a Peak in US Home Prices May Be Approaching - 8th Oct 21
Alton Towers Scarefest is BACK! Post Pandemic Frights Begin, What it's Like to Enter Scarefest 2021 - 8th Oct 21
AJ Bell vs II Interactive Investor - Which Platform is Best for Buying US FAANG Stocks UK Investing - 7th Oct 21
Gold: Evergrande Investors' Savior - 7th Oct 21
Here's What Really Sets Interest Rates (Not Central Banks) - 7th Oct 21
CISCO 2020 Dot com Bubble Stock vs 2021 Bubble Tech Stocks Warning Analysis - 6th Oct 21
Precious Metals Complex Searching for a Bottom - 6th Oct 21
FB, AMZN, NFLX, GOOG, AAPL and FANG+ '5 Waves' Speaks Volumes - 6th Oct 21
Budgies Flying Ability 10 Weeks After wings Clipped, Flight Feathers Cut Grow Back - 6th Oct 21
Why Silver Price Could Crash by 20%! - 5th Oct 21
Will China's Crackdown Send Bitcoin's Price Tumbling? - 5th Oct 21
Natural Gas News: Europe Lacks Supply, So It Turns to Asia - 5th Oct 21
Stock Market Correction: One More Spark to Light the Fire? - 5th Oct 21
Fractal Design Meshify S2, Best PC Case Review, Build Quality, Airflow etc. - 5th Oct 21
Chasing Value with Five More Biotech Stocks for the Long-run - 4th Oct 21
Gold’s Century - While stocks dominated headlines, gold quietly performed - 4th Oct 21
NASDAQ Stock Market Head-n-Shoulders Warns Of Market Weakness – Critical Topping Pattern - 4th Oct 21
US Dollar on plan, attended by the Gold/Silver ratio - 4th Oct 21
Aptorum Group - APM - High RIsk Biotech Stocks Buy, Sell, Hold Investing Analysis for the Long-run - 3rd Oct 21
US Close to Hitting the Debt Ceiling: Gold Doesn’t Care - 3rd Oct 21
Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
Original Oculus VR HeadSet Rift Dev Kit v1 Before Facebook Bought Oculus - 3rd Oct 21
Microsoft Stock Valuation 2021 vs 2000 Bubble - Buy Sell or Hold Invest Analysis - 1st Oct 21
How to profit off the Acquisition spree in Fintech Stocks - 1st Oct 21
�� Halloween 2021 TESCO Shopping Before the Next Big Panic Buying! �� - 1st Oct 2
The Guide to Building a Design Portfolio Online - 1st Oct 21
BioDelivery Sciences International - BDSI - High RIsk Biotech Stocks Buy, Sell, Hold Investing Analysis for the Long-run - 30th Sep 21
America’s Revolving-Door Politics Behind the Fall of US-Sino Ties - 30th Sep 21
Dovish to Hawkish Fed: Sounds Bearish for Gold - 30th Sep 21
Stock Market Gauntlet to the Fed - 30th Sep 21
Should you include ESG investments in your portfolio? - 30th Sep 21
Takeda - TAK - High RIsk Biotech Stocks Buy, Sell, Hold Investing Analysis for the Long-run - 29th Sep 21
Stock Market Wishing Away Inflation - 29th Sep 21
Why Workers Are NOT Returning to Work as Lockdown's End - Wage Slaves Rebellion - 29th Sep 21
UK Fuel PANIC! Fighting at the Petrol Pumps! As Lemmings Create a New Crisis - 29th Sep 21
Gold Could See Tapering as Soon as November! - 29th Sep 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Global Financial Markets Analysis - Technically Precious with Merv

Stock-Markets / Global Stock Markets Sep 01, 2007 - 06:04 PM GMT

By: Merv_Burak


It's been a quiet week in the precious metals. The action has been basically lateral with some upward bias. Friday was good but probably with little volume. So, this week I thought I'd go into something different and just take a quick review of the some markets around the globe.


Let's just take a quick look at gold and get it out of the way.

It's been basically a lateral move during the week. Friday saw a sharp upward move but I suspect the volume was very low as most professionals probably took off for an early long week-end. I have no reason to really change my last week's analysis. Apply it to this week. The early part of the trading week should provide a better idea as to the direction for gold over the next while.

SOMETHING DIFFERENT (for Technically Precious with Merv)

Let's take a quickie tour through the global markets this week.

United States of America

There are several market Indices that are quite common in the U.S. as far as getting an idea as to what's happening in their market. The more common are the Dow Jones Industrial Average and the Standard and Poor's 500 Composite Index. Let's look in at the venerable Dow.

The Dow has been on a binge for some time now. The latest bull move started in Oct of 2005 with a couple of rest periods along the way. Notice the lows in the momentum indicator at the previous price bottoms. The low a week ago was at the same level. Now the question, will we get the same rally as we have before? I'm of a mind that this time there will be no rally to new highs, at least not before we get some further lows. This time we have had a significant weakening in the momentum prior to the drop and such drop may not have worked itself out yet. I could be wrong (often am) but that's the way I see it.


Shown is the S&P/TSX 60 Index. It can be described as Canada 's equivalent to the Dow but with 60 component stocks versus the Dow's 30. The S&P/TSX has been in a steady up trend since reaching a bottom in 2002. The action has been confined to a relatively narrow up trending channel on a semi-log scale chart. The question here is, will it continue in the channel? The long term momentum indicator shown in the chart has been in the positive zone since the start of the bull move. However, the momentum has been showing significant weakness over the past several months and this may eventually result in a turn around by the Index. Nothing lasts forever. One would be on guard for the momentum moving into its negative zone while the Index moves decisively below its lower channel trend line.


There are two major China Exchanges plus the Hong Kong (which I usually consider separately). Let's look in on the Shanghai Composite Index.

If you have been wondering what's fueling the commodity world there is no better picture than to show the performance of the Chinese economy, here represented by the Shanghai Composite Index. Over 400% gain in less than two and a half years. Now, that's performance. However, two things strike me in this chart. First, as with the other Indices, the momentum indicator is giving us a warning by being weaker than the price action. It is still quite high inside its positive zone so there is no danger of going bearish soon but the warning could mean a slow down or rest period for the Index. The other thing of note is the possibility of an accelerating bearish FAN trend lines. We just might be in the “blow-off” stage. If so, a crossing below the third FAN trend line may signal the end of this bull, at least for a while.

United Kingdom

I'm going to have to get out my geography book. Is it United Kingdom or England or Great Britain or what? Anyway, it's the FTSE 100 Index that we look in on here. As we had seen with the Canadian Index, the FTSE is also trapped in an upward trending channel, only here it is in a normal (geometric) scale chart. The latest action seems to want to break down below the trend but we'll need a close below the support at 6000 to be final. The momentum indicator has been warning of weakness behind the Index action over the past several months. It had dropped below the neutral line but it has been there before. More convincing is a drop by the indicator to the 45% level.


The Bombay Stock exchange (Mumbai) has its equivalent to the Dow with 30 component stocks. The BSE SENSEX 30 Index is shown below. As with so many Indices this Index has had a good run for the past several years. However, the long term momentum indicator is screaming BEWARE. The two new highs during 2007 have been made on increasingly lower momentum. The strength behind the Index move is deteriorating. At some point the turn WILL come, but when. I would watch that 14000 level very carefully.


They all seem to look the same, several year up trends, some inside well defined channels, positive long term momentum indicators that seem to be in serious weakness, etc. All that can be said for the TA-100 Index. The one difference here is, however, that the latest action is still near the upper channel line rather than the lower line.


More of the same. Long term up trend. Weak momentum. Channel. Etc.


As we see, from almost every part of the globe we get a similar picture. Several year bull markets still in progress. Long term momentum indicators are warning of deteriorating strength behind the moves. Are we getting ready for a global collapse in the markets? Interesting weeks ahead.

Next week we will be back to the precious metals again.

That's it for this week. I hope you enjoyed this little bit of deviation from the norm.

By Merv Burak, CMT
Hudson Aero/Systems Inc.
Technical Information Group
for Merv's Precious Metals Central


During the day Merv practices his engineering profession as a Consulting Aerospace Engineer. Once the sun goes down and night descends upon the earth Merv dons his other hat as a Chartered Market Technician ( CMT ) and tries to decipher what's going on in the securities markets. As an underground surveyor in the gold mines of Canada 's Northwest Territories in his youth, Merv has a soft spot for the gold industry and has developed several Gold Indices reflecting different aspects of the industry. As a basically lazy individual Merv's driving focus is to KEEP IT SIMPLE .

To find out more about Merv's various Gold Indices and component stocks, please visit and click on Merv's Precious Metals Central . There you will find samples of the Indices and their component stocks plus other publications of interest to gold investors. While at the web site please take the time to check out the Energy Central site and the various Merv's Energy Tables for the most comprehensive survey of energy stocks on the internet. Before you invest, Always check your market timing with a Qualified Professional Market Technician

Merv Burak Archive

© 2005-2019 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

Post Comment

Only logged in users are allowed to post comments. Register/ Log in