Long tails on the last two days of the spot gold daily chart indicate strong support at $1700 per ounce. Breakout above $1740 would indicate another test of $1800. 63-Day Twiggs Momentum well above zero suggests a healthy up-trend. A weakening dollar would strengthen the signal.
* Target calculation: 1800 + ( 1800 – 1700 ) = 1900
The Dollar Index (weekly chart) retreated below resistance at 81. Follow-through below 80 would test primary support at 78.50, while failure of primary support would complete a head-and-shoulders reversal with a target of 74*. 63-Day Twiggs Momentum holding below zero already suggests a primary down-trend. Breakout above 81.50 is unlikely but would indicate an advance to 84.
* Target calculation: 79 – ( 84 – 79 ) = 74
The DJ-UBS Commodity Index (weekly chart) respected support at 140. The 63-day Twiggs Momentum trough above zero suggests a primary up-trend. A weakening dollar would strengthen the signal, while breakout above 152 would confirm. Breach of 140 is unlikely but would test primary support at 126.
Nymex WTI Light Crude and ICE Brent Crude are both trending downward. The 63-day Twiggs Momentum peak at zero warns of a primary down-trend. Breach of primary support would confirm: WTI at $78 per barrel and Brent Crude at $90.
Your “long tails on Spot Gold” comment over last two days is confusing as is your chart. All my spot gold charts show that the gold price did not fall below $1722 per oz on Wed 20 Nov yet your chart shows $1700. Where are your figures from?
Morningstar Real-Time Data in London.
Thank you for alerting us. Seems like we got some bad data from Morningstar. Daily charts have been corrected. The tails are far less pronounced.