@Wack I thought that I will do another 'view' of the current...

@Wack

I thought that I will do another 'view' of the current state of play TA focussed.


The local gold sector is probably the most bearish of the 3 charts IMO mainly I suspect due to the weighting aspects of the big boys all are struggling at present.


XAUUSD spent more time on the upper quartile of the RSI positioning since the aggressive sell off in response to the pandemic panic is March this year. The exponential rise from June-August is always going to be unsustainable on most price action I have experienced. On a best-fit trendline, yesterday's rejection was what happened but the pullback to that key $1865 was a relief! Since the fall to $1767, effectively wiped out the entire expo gain, momentum is favoring the bulls in the HL HH right to the TL. You can see the RSI oscillator reflecting this which is just measuring the fact, no indicators I know front run price.

The early signs of a shift in bullish momentum is indicated by the RSI value > neutral 50 level. It is still early days to be calling a reversal but should the TL break trigger a breakout, the indicator will track the price and perhaps spend more time above 50?


DEG like some of the mid-tier boys are actually less volatile in price like GOR and the RSI is consistently at the bottom quartile of the neutral 50. The school of thought suggests that if we can a trigger from XAUUSD, either the stronger ones (trend) will outperform their weaker peers OR the 'catch up' will outperform in the ST as the sector adjusts to their valuation. I am in 2 minds but I usually favor the earlier school.

I haven't compared the entire sector peers but just a casual view of the bigger ones suggest DEG is the closest to tracking XAUUSD in that TL breakout (hoping).

A bastardised view of the inverse H&S can be seen in both gold and DEG if one is looking for confirmation bias! LOL I'll leave it at that.

AND lastly, DXY is very correlated negatively to the equity markets in general but appears to be flipping with gold in cycles. No idea how to explain it, it is what it is sometimes. Just my 2 cents which only gives me some confidence that gold isn't going to crash anytime soon.