A Bullish Change in Direction


The following is an excerpt from the Weekend Report

Gold declined rather steadily from late October through 12/31. During that time a bullish divergence was developing on the True Strength Indicator.

Free Image Hosting at www.ImageShack.us

Gold printed its daily cycle low 12/31. Gold printed a higher high on Friday, which was day 7. There are two things that we are looking for gold to do during this daily cycle. The first thing is to see if gold forms a right translated cycle. Setting new highs past day 14 swings the odds towards this being a right translated cycle. The second thing that we are looking for is to see if gold can break above 1267.50. Breaking above that level would see gold form a higher high, thus breaking the pattern of lower highs.

Free Image Hosting at www.ImageShack.us

The first thing that I noticed on the weekly chart is that gold held above the June low. Not only did the gold hold above the June low but rocketed higher after testing that low. The weekly swing low and break of the declining (blue) trend line does signal a new intermediate cycle. A break above the (black) declining trend line will signal a significant trend change is at hand.

2 gold

Backing out the weekly chart we can see that breaking above the black declining trend line breaks an over year long down trend.

And a break of that declining trend line will return gold back to a bullish posture …


If you wish to subscribe to the Weekend Report please follow the link below.



3 thoughts on “A Bullish Change in Direction

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s