My charts suggest the world is in a very dangerous place this morning. However, trying to ignore the gloom and find something favourable for the market.
You know how I LOVE triangles – well gold is back up to its previous high overnight having broken out of the triangle I highlighted yesterday. Might have to clear out a bit of selling around here but very encouraging.
Now something different. This is our XGD (gold index). How about a bit of technical analysis theory. With these big expanding triangles, if the reversal marked (E) does not reach the bottom of the pattern, it is a very encouraging sign and should now suggest that our gold index is going to ultimately go out the top of this pattern – as I have suggested on the chart.
The red line on the chart is the OB/OS indicator which is slightly oversold.
At the same time don’t forget the potential huge base pattern in our gold index that I have highlighted a number of times. Could we finally be about to break out of that pattern? That would be exciting.
And just one more little comment – DUST which is two time bearish ETF on gold – I have never seen such high volume in this ETF. A few people took a bath there overnight.
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Last
3,294.5 |
Change
30.700(0.94%) |
Mkt cap ! n/a | |||
| Open | High | Low |
| 3,263.8 | 3,294.5 | 3,263.8 |
| XSO (ASX) Chart |