The Dollar Index continues to struggle with resistance at 80. Reversal below 78 would signal the end of the primary up-trend and a re-test of the 2011 low. Reversal of 63-day Twiggs Momentum below zero would strengthen the warning, while respect would indicate another primary advance.
* Target calculation: 82 + ( 82 – 78 ) = 86
Spot Gold failed to respond to the listless dollar, testing the long-term trendline and support at $1600/ounce. 63-Day Twiggs Momentum oscillating around the zero line indicates indecision. Recovery above $1700 would indicate a fresh primary advance, while failure of $1600 would warn of a primary down-trend — with a long-term target of $1200*.
* Target calculation: 1800 + ( 1800 – 1600 ) = 2000; 1500 – ( 1800 – 1500 ) = 1200
Colin Twiggs is a former investment banker with almost 40 years of experience in financial markets. He co-founded Incredible Charts and writes the popular Trading Diary and Patient Investor newsletters.
Using a top-down approach, Colin identifies key macro trends in the global economy before evaluating selected opportunities using a combination of fundamental and technical analysis.
Focusing on interest rates and financial market liquidity as primary drivers of the economic cycle, he warned of the 2008/2009 and 2020 bear markets well ahead of actual events.
He founded PVT Capital (AFSL No. 546090) in May 2023, which offers investment strategy and advice to wholesale clients.
I’ve told you what I think of support and resistance. Your comments on US $ and gold above are too mechanical. If you are technical, you should identify the patterns the charts show. Moreover, you should also comment on the inter-relationship between US$ and gold.
Patterns like the unfinished inverted head and shoulders?
I have been using TA for over 20 years. And when I see the dollar making a head and shoulders and gold making an inverted head and shoulders formation, it’s a no brainier to me to sell the dollar and buy gold.Twiggs money flow even suggests the same.
Now when I use Gann lines, along with fib’s and stochastic and Williams %R, I get even more conviction to buy gold.
Gold is one of the safe havens to maintain the value of your hard earned money. Our financial system is really a ponzi scheme because it always needs debt extention to create new money and of course new det. For that reason i prefer gold instead of worthless green paper (the private federal reserve note). Due to market manipulations of the future market of gold we have the sensation that gold will lose its value. If you not sure about the gold price you can always buy one third silver one third platin and one third gold.