Tuesday, December 30, 2014

And there goes gold ex-USD

And there goes gold ex-USD:

1. Early December pop through resistance.

2. Mid-December drop to the $4.75-or-so pivot and a fat churning retest.

3. Now a pop back up: how high does it go?

And everyone who's long-USD-short-gold or long-Nikkei-short-gold is probably asking the same thing.

Because this chart could turn out very scary for them:

Because the weekly chart for gold ex-USD is forming a very orderly upward channel, despite gold being sold heavily, which means if it stops being sold heavily it could become a very disorderly upward channel quite quickly in exactly the way the goldbugs would enjoy.

This is all off what is admittedly a bullshit chart, except people seem to pay attention to bullshit, and this bullshit chart actually does determine whether some people are making money.

Watch out for 4.88 on the chart.

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