Brief Technical Analysis: Gold Topside Pivot Barrier Short Set Up and more

In this briefing:

1. Gold Topside Pivot Barrier Short Set Up
2. Komatsu, HCM and CAT Tactical Recovery Targets and Macro Pivot Support

1. Gold Topside Pivot Barrier Short Set Up

Our bullish gold view from 1,200 just kissed the formidable topside resistance near 1,350 with increasing signs of the current up leg exhausting.

The standout chart feature stems from the most recent highs have not been confirmed by the daily RSI and MACD for a case of bear divergence amid a rising wedge. This divergence along with the physical barrier at 1,350-60 sets up a compelling short trade.

Well defined MACD triangulation denotes clean breakout points. RSI will give us good lead signals on a break below trend/pattern support.

A peak in gold may tie in with a firming USD bias and exhaustive moves in base metals.

2. Komatsu, HCM and CAT Tactical Recovery Targets and Macro Pivot Support

We thought a technical view on these counters would help clarify where tactical rally targets come into play as well as more important macro support levels where a basing process is expected to begin.

Key resistance points can be used as short zones with key pivots stops and limit levels that reign in risk.

All three stocks display varying degrees of a macro descending corrective wedge formations that have yet to fully mature. 

CAT stands out as the more buoyant of the group and faces its own set of upside pivot resistance points with solid macro support to work with on weakness.

We wanted to fold in a technical view with Mio Kato, CFA and his insight Komatsu, HCM, CAT: The Stock Punishment Does Not Match the Outlook Deterioration Crime . This group may be ahead of the earnings curve and why we may see more gas in a corrective bounce cycle (CB easy policy and the hunt for value may be part of the rally) before more pressure points are hit to re test macro support targets.