Important to Note: On the financial sector there is also bearish reversal on other banks
· Bank of America on a close today below 16.91 = BEARISH WEEKLY REVERSAL & SELL SIGNAL with a stop above 17.41
· Morgan Stanley on a close today below 34.19 = BEARISH WEEKLY REVERSAL & SELL SIGNAL with a stop above 35.40
· Goldman Sachs on a close today below 183.11 = BEARISH WEEKLY REVERSAL & SELL SIGNAL with a stop above 189.50
· JPM Chase on a close today below 59.63 = BEARISH WEEKLY REVERSAL & SELL SIGNAL with a stop above 60.80
· City Bank on a close today below 51.75 = BEARISH WEEKLY REVERSAL & SELL SIGNAL with a stop above 52.67
And on the other side of the terrace:
GOLD – a close today which equals a weekly close above 1,218.36 = WEEKLY BULLISH REVERSAL with a stop below 1,180
3 most interesting are:
BAC US – a close today below 16.91 would suggest a weekly bearish reversal = sell signal with a stop above 17.41
· Since this reversal comes at the highs of the trend there is also a risk of a double top. The current move up from the 14.32 low does look like an A,B, C correction – chart attached below
Weekly chart
MS US – a close today below 34.91 would suggest a weekly bearish reversal = sell signal with a stop above 35.40
· The most important thing about this reversal is that is comes on a false break above 34.17 (October 2009 highs) – this false break higher along with the weekly bearish reversal does risk a move lower
Weekly chart
And a wider view at the weekly chart
GOLD - a close today which equals a weekly close above 1,218.36 = WEEKLY BULLISH REVERSAL with a stop below 1,180
· The 1180 level has provided very good support over the past 15 month and while this holds the odds for a move higher is high
Weekly chart
So if we have a sell signal on finanicals in the US – what do we buy GOLD?
Look at the correlation between
BAC US & GOLD
MS US & GOLD
GS US & GOLD
JPM US & GOLD
C US & GOLD
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