The Brains Trust - 2024, page-1785

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.