Bearish Engulfing (Key Reversal) GLD, SLV, OIH, BAC, JPM, AA, AAPL

We had another key reversal today (3rd one in three months!) in gold and silver. To have this many in three months is very unusual and the continued rising price activity despite these indicators is suspicious. Expect another retracement, though how deep I cannot say considering the last two were much less severe than expected. Oil Service Holders Trust (OIH) which is a widely popular oil ETF, also reversed midday.

If you’ll remember back to the last reversal on Nov 9th, I said that it may be safe to buy when the %K hit 25. I believe that was the correct strategy as price activity bounced as soon as it hit 25, though I was incorrect in thinking that it would go lower. This time around I stand by what I said before, wait for the %K to touch 25, on the slow stoch before adding shares.

*Updated* BAC finished the day in a bearish engulfing pattern while JPM, AA, and AAPL all had key reversals. Intesting as we have been teetering on the 1226 on the S&P and eventually closed below that at 1223.

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About Aaron Basile
Market Technician, Equity/Commodity Trader, Austrian Economist, Contrarian Investor

One Response to Bearish Engulfing (Key Reversal) GLD, SLV, OIH, BAC, JPM, AA, AAPL

  1. Pingback: Recap, Entry Point, Price Target, Laggards & Deals « Aaron Basile

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