The move in gold this week has been amazing. As we can see from this daily chart, it has been straight up for eight trading sessions. At the same time my OB/OS indicator on the lower level is now in very overbought territory. Also the US dollar has been falling for six sessions in a row. All getting a bit overdone in the short term.
View attachment 6026835And just to bring the very long-term picture into focus – this is the monthly chart of gold. Yes, we have broken through to new territory, but it doesn’t look quite as dramatic as the daily chart. Wonderful long-term picture.
View attachment 6026837And in the same vein, I included the weekly chart of our gold section (XGD) some weeks ago highlighting what I thought looked like a very large base pattern. At this stage, the stocks have not enjoyed the same support as gold (nor has the price of silver), but I still think the potential is here.
View attachment 6026841Some weeks back I included a chart under the heading of A Tale of Two Countries. This week I have the Tale of Two Sectors – our Miners (XMM) and our Banks (XXJ). And what a tale it is.
First of all the Miners. They followed my idea of a high in January. Usually if we have a high in January, we can buy in March. Good to keep this in mind. The index is still trading in this support zone which does have long-term significance.
And the Banks. This uptrend is just amazing with what looks like a blow-out top at the end of last week.
Should we buy one and sell the other or sell them both?
So many questions.
View attachment 6026843And for a slightly different look at the commodity scene – this is DBB Base Metals Fund. As with the previous chart of our miners, the price is just sitting here on long-term support. Break up or break down? What a crucial point so many charts are at.
View attachment 6026847And I have to update the steel price chart I highlighted a couple of weeks ago. Still easing lower but here again back into long term support.
View attachment 6026849Have you been watching Apple? With all the excitement on the US market, a stock as important as this one has not been going up. It is back in to support but considerably below the previous highs. I think this stock led the main drive into tech from 2016. To see it now
not keeping pace is definitely not a plus. And then add in a huge volume day on NVDA on Friday when it formed a massive bearish engulfing pattern and there is a lot to be nervous about.
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