Dacian Chart, page-170

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wooshaa

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29/03/21

12:26

Post #: 52110495
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Originally posted by PhillW: ↑

DCN de-linked from the gold price in Sep 2019. Since then it has made highs when gold made lows and lows when gold made highs. I suspect DCN sp movements are in line with its operations. Another words, the market is waiting for DCN management to prove themselves. The AUD gold chart doesn't look good and may be bear flagging for one last push to $2100. If it spikes above AUD $2300 and is able to break above AUD $2400 then that would be bullish for gold as measured by the AUD.

There are two important price levels for gold in USD. A break below $1690 would indicate that lower lows are coming and $1580-1600ish is next support. A break above $1790 is the first indication that gold has potentially bottomed. The current $1763 low (.618 Fib retracement) and $1590 (.786 Fib retracement) area is strong support zones. The March 2020 bottom occurred at the 0.618 fib retracement zone and the current low of $1763 was also at the 0.618 fib retracement zone.

The shorts know these chart levels and will be doing everything in their power to break these support areas, fully knowing that a ton of stops are sitting below these areas. Personally I would like to see the $1763 support zone fail because I believe the fall to $1580-$1600 would occur very quickly afterwards. This would allow the shorts to cover and the resultant rally would be powerful.

As for DCN chart well DCN needs to get above 38c to get rid of some of the ugliness in its chart and then 42c. A close above 42c would be bullish and I suspect that this will only occur with a good quarterly or gold breaking above US $1790.

On the downside, DCN has strong support from 29c to 32c. If 29c level was to fall I would suspect the March quarterly was very ugly.

In hindsight the rally in DCN to 42.5c a week or so ago which was a potential breakout area was in reality a pump and dump engineered to allow index funds to exit DCN in a rising sp environment due to the removal from the ASX300. Only retail traders sell into falling prices. Fund managers like to exit in a rising or stable sp if they can manage it (engineer it).

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Thanks for the insight on last bit, was puzzled on the spike during rebalancing, whilst others expecting breakout.

DCN Price at posting: 35.5¢ Sentiment: None Disclosure: Held
1 Upvote

0 Great analysis

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