For those of you who are not chartists, a moving average calculates the average price over a specified number of days, such as 50 days.
This is the same story as above: the 50-day moving average is crossing below the 200-day moving average and the price remains below both.
Its price is holding above its key 10-week moving average as it begins Week 7 of consolidating price gains.
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Tentatively, I suggest a ten-year moving average to reflect a full asset-price cycle.
Currently trading close to its 52-week high, the ever-increasing gap between the unit price and that of the moving average lines indicates more bullishness.
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The move drags the gold price below its 10-day moving average on the highest volume in nearly a year, reversing the spectacular upward momentum since July 1.
And, on weekly chart, the price remains above its 40-week moving average.
On the weekly chart, you can see that price is already below the 40-week moving average.
The share price also remains above the 200-day moving average.
And you can see how the price is clearly above the uptrending 50-day moving average on the daily.
It did not test many other widely used indicators, such as the relationship between the current price of a share and its 200-day moving average.
Also, instead of using a static exit and waiting for five days, use a dynamic price exit by exiting the trade when the stock closes above its five-day simple moving average (SMA).
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