A golden cross is when the 50DMA crosses over the 200 DMA.
Some folks ignore a golden cross all together. Some technicians place alot of weight on them.
Some have mixed feelings saying they do not apply to miners OR metals.
In fact, loooking at a chart of SLW, we clearly see the last golden cross quickly turned into a huge drop in the PPS. However, I think this time is different.
Personally, now that we have the golden cross in SLW it's worth exploring.
The action before the prior golden cross was almost a complete inkspot OPPOSITE of the action we have been experiencing recently.
Look at the differences.
Our PPS is over the moving averages now, and that last time it was just about under.
Any technicians here wish to comment? I'm a fundamental investor, not a technician, however,I do follow TA approachs.
ah I said this days ago, look it is simple and clear, the world and its currencies is a MESS! QE3 is the push we needed to go back to 45 and SLW earnings will rock as well. find Jim Rogers bog spot I listen to him everyday. And Fort Wealth follow a pro trader in commodities. they are all long here!! when silver pops over 35 SLW will hold 40, they are holding it back but with gold going higher they cant hold it back for long..options expiring next week should be fun!!
Not arguing.Most know I'm long metalsand miners.Not a bug. But I've elaborated my reasoning for months.
Just discussing this technical aspect.
I will add this.
Any close over $40 is very strong.
And a close over $40.28 is VERY strong.
Here's the thing about golden crosses, Sirius.... By the time they have formed, most have missed the opportunity to make $ on the run up. That's why you gotta look at what the moving averages are doing and get your position months in advance, so you do not miss the run up.
The MACD, RSI, SMA and a point and figure chart will tell you all you need to know, so you don't miss out.