The Gold Bugs Index broke its descending trendline on the weekly chart and shows a bullish divergence on 13-week Twiggs Momentum. Both suggest reversal to a primary up-trend, but first we are likely to see a re-test of support at 190. Respect of 190 followed by recovery above the recent high at 225 would strengthen the reversal signal.
Spot gold displays a similar penetration of the descending trendline and bullish divergence on 13-week Twiggs Momentum, suggesting that a bottom is forming. Follow-through above 1280 would strengthen the signal. Reversal below 1240, however, would warn of another test of primary support at 1180. Breach of 1180 is unlikely, but would offer a target of 1000*.
* Target calculation: 1200 – ( 1400 – 1200 ) = 1000
The silver chart, consolidating above primary support at $18/ounce, is mimicking gold. Recovery above $20.50 would also suggest that a bottom is forming.
I COMPLIMENT YOU FOR YOUR CONSTANTLY RELIABLE & WIDE-RANGING WORK.
REF. YOUR SPOT GOLD CHART TODAY MY $3 X 3 REVERSAL-SCALE P&F CHART HAS BEEN BULLISH SINCE 27 JAN. FOR TWO REASONS.
CURRENT TARGET $1360 FROM A COLUMN-COUNT OF BASE-PATTERN BELOW $1266, WHICH IS A VERY BIG RESISTANCE (AS CONFIRMED ON MY LOG-LINE CHART) & WHICH I AM SURE WILL BE CROSSED FOR A GOOD REASON. NEXT RESISTANCE IS JUST BELOW $1300.THEN A BIG RESISTANCE $1355. (I USE UPDATA TA SYSTEMS)
BEST REGARDS – MICKEY BAIN
My spot gold chart today has been bearish since around the same time. Current target is around $1200, which may be crossed in the not too distant future. Can I write you a call option, Mickey Bain ?, Or perhaps you want to sell me puts cheaply ?