13 thoughts on “CHART OF THE DAY

  1. K.Gee

    I still think gold will fall through $1000. Possibly in a paper rout a la 2008. That’ll be the low. This to me looks like a sucker’s rally.

    1. Tenyear

      Just curious what makes you think it is a sucker’s rally? I think stocks could continue down until well into the summer or even fall until the Fed raises rates. Gold may continue to climb after consolidating here. $1000/oz is a huge psychological barrier and if Gold breaks it it will be a huge drop from there.

  2. DonM

    Gary, daily charts are useless. The weekly and monthly chart for gold are very positive and I wouldn’t be selling gold or it’s miners now. This is the time to buy and you are still dithering, looking for weakness.

    1. gary Post author

      Just waiting patiently for gold to make a higher intermediate high and confirm that the bear is over. This bull still has years to run. Missing a month or two is no big deal.

    1. gary Post author

      It confirmed that a cycle low was in progress. I would need to see a break of the down trend line to before getting confirmation that the DCL is complete.

      1. Just a BRICS in the Wall

        I’d just like to thank you for providing a good quality trading blog ….. in my opinion, you have the best free trading blog on the web …… with your skills; if you continue to treat people fairly and honestly over the long-run you will be rewarded with long-term success, imo.

  3. Rob

    Gary, Does the RSI 5 have to touch the 30 line to make a DCL, or is it just additional confirmation after a swing low within the timing band AND a trend line break? How important is the RSI 5 in signalling a DCL? TIA

    1. gary Post author

      The purpose of a DCL is to clear bullish sentiment. A DCL that fails to do that is likely to produce an unsustainable rally. It would be better for gold if it were to continue down this week and tag support at 1240 and get more oversold.

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