The Dollar Index retraced to test the new support level at 76.00. Respect would confirm the primary up-trend, while failure would signal trend weakness. A trough above zero on 63-day Twiggs Momentum would strengthen the bull signal.
* Target calculation: 80 + ( 80 – 76 ) = 84
Gold broke through $1700/ounce in response to dollar weakness. Expect retracement to test the new support level. Respect would signal a primary advance to 1800*. The long-term (primary) trend remains upward.
* Target calculation: 1700 + ( 1700 – 1600 ) = 1800
The Amex Gold Bugs Index is testing medium-term resistance at 560. Breakout would test the upper border of broadening wedge pattern — around 650 — and support a similar advance for the spot metal.
Brent crude is also stronger, testing its upper trend channel at $110/barrel. Respect would indicate another test of the lower channel — and the ascending long-term trendline — while breakout would signal an advance to $120*.
* Target calculation: 110 + ( 110 – 100 ) = 120
The broader CRB Commodities Index is also headed for its upper trend channel. The ascending primary trendline remains intact but 63-day Twiggs Momentum respect of the zero line (from below) warns of a strong down-trend.
Good to read your concise reports
Good read. Does the double red line in the case of the Brent crude represent the lower channel mentioned or does it have to go lower for the lower channel?
The channel dipped below the long-term trendline and primary support (the double red line) at $100/barrel. Expect strong support at $100. Failure would signal a strong down-trend.