UUP sold off its 92-96 true bull signal today, but the things do not look as bearish as they might seem at the first glance. The path is now clear but the xxing is still off on all indices. For the picture to turn bearish, SKI wise, the next signal needs to be a 35-39 sell. If the opposite happens and the 92-96 buys back first then the picture turns very bullish again, because that buy would be a new true bull signal.
If we consult a traditional TA chart for clarity, the current move looks like a dive into a 'no man's land'. The price is still inside the contracting area but the chart pattern that is emerging seems like a 12-month long inverse head and shoulders that, if broken to the upside, could lead to a massive rally. The price is still above both 50 and 200 MAV (24.62-24.64) and so far the path of least resistance seems to be up.
The resolution on this chart will impact the gold market significantly.
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