The weekly chart of the HUI Gold Bugs index asks a question we have been reviewing in NFTRH for some time now; is the bottoming situation implied by the up-triggered weekly MACD (and confirming TRIX) a ‘W’ bottom in the making that saw its low at 206? Or is it an Inverted Head & Shoulders (IHS), that would theoretically make a final washout below 170 as a ‘Head’ is formed?
By Tom McClellan
November 1, 2013
Well for one thing, gold has often experienced strength during periods when long-term yields have risen. The yellow bars on the 2 lower panels of the chart below show that. Yet on this cycle, gold has gone down as long-term yields have risen.
I will let the real brave bears take whatever downside is left on crude. With today’s plunge (per 2nd chart below) I think enough is enough. Booking profit.
USO shows today’s tankage…
First of all the silver gold ratio is sneaky because it is a ratio and thus, hidden beneath the surface of things. It is also sneaky because all it has done during this June low retest in the precious metals is consolidate… sneakily. It has not broken down and indeed is hanging around the 200 day averages again. They say the more times resistance is tested the weaker it becomes. Also, that’s a pretty MACD to a watchful geek.