Convergence is also happening

Here is a story of convergence to the mean, not reversion.

The chart and graphics below show the Gold price (in USD) trading sideways for 2 years while the 200 week moving average has risen $300 or improved by more than 20%.

It has converged towards the oscillating price of Gold which has spent a couple years digesting and consolidating.

I’m preparing for a further 4% swoon from its current $1,706, down to around the $1,640 mark.

September 14, 2022

by Rob Zdravevski

rob@karriasset.com.au

Another FANNGM is doing it

The Nvidia (NVDA:US) mean reversion is almost done.

It doesn’t necessarily mean that its 200 week moving average is the place to buy, as it may overshoot to the $103-$115 mark…..

this chart did tell you that it was dangerous chasing and buying this stock at stretched valuations as it soared way above its 200 WMA.

September 14, 2022

by Rob Zdravevski

rob@karriasset.com.au

%d bloggers like this: