I know many of you prefer reading a post to watching a podcast so I’m going to keep this as simple as posible in a short post. Gold has not made a clear and convincing breakout on the monthly and quarterly charts BUT, it has made an ’embryonic’ breakout on the weekly chart. A lot depends on broader markets next week (I’m thinking about the banks as well), but there is a possibility of a very strong upside move here. Let’s look at the chart…
If the Stoch RSI can remain elevated as long as it did in late 2018/early 2019, then we’ll take off. If we close a week below about $1920, we’re likely to head down and meet the rising 3-year moving average, which is a little above the 30-week moving average (green line) in the chart above (currently $1816).
We will only go long gold in the Trade Tracker, based on a confirmed monthly close convincingly above $1980, with XAU/SPX above 0.50
$xauusd
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