Tuesday, November 15, 2016

An important caveat about the gold chart right now


This is so important that I'm going to try to post images again:



Ah, success. Google loves me again.

Make no mistake, gold in USD is in fucking trouble here. A break in the gold price below $1210 negates the entire reason for owning gold miners that the market has had since early spring. This right here is a "hold or die" line. Your miners go to $0 if this dies.

BUT:


Gold in Canadian dollars looks very constructive. The mid-October pivot, and the break through $1620-$1640 in May & June, act as strong support.

And:


Gold in (hundreds of) Euros actually looks fine too. In fact, if I was a greasy European I'd be loading up the truck at this point, with gold at -2SD at a higher low, a positive divergence on MACD, and the SMA(50) resistance just 2-3% away.

It's up to you to figure out which of these narratives you believe will win out in the end.

Far as I'm concerned, I'm still stuck at the point where I'm trying to fade the hammerblow torque of the Trump win so I can see the underlying trend without all the graph discontinuities.


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