RETESTING THE 200 DAY MOVING AVERAGE

$XAU – Retesting the 200 Day Moving Average
Mining stocks have broken their daily cycle trend line and are likely to retest their 200 day moving average over the next week or so. This would potentially allow the daily RSI(5) to push down to an oversold reading near/below 30, give the rising 50 day moving average more time to catch up to price, and trigger the stops of traders who bought the breakout above the 200 day moving average within the past month. This is a normal corrective move that is unlikely to last much more than a week.

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DOLLAR CYCLE

Dollar Cycle
The dollar is possibly completing the right shoulder of a head and shoulders pattern. Overnight price completed a swing high suggesting a decent possibility the daily cycle has topped. Several scenarios for the dollar’s future price movement are discussed, as well as the implications for price performance of gold related investments.

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