Chart of the Day - Friday, June 7, 2024

🏆 Today’s Chart of the Day was shared by Michael Kahn (@mnkahn). 

• It was an ugly day for Precious Metals. Gold dropped -2.76%, while Silver had its worst day since Feb. 2021, sliding -6.14%. However, neither metal has made a one-month low yet.

• Michael points out that Gold broke the neckline of a two-month Head & Shoulders Top today. It also closed below a rising 50-day moving avg. for the first time since February.

• Gold has also formed a Bearish Momentum Divergence over the past two months. RSI failed to confirm the most recent all-time high, and it's been unable to reach overbought territory lately.

The takeaway: Gold broke down from a Head & Shoulders pattern today after losing momentum over the past two months. This opens the door to further downside in the near term. However, the uptrend remains intact.