GOLD Price monthly K.I.S.S

TVC:DXY   U.S. Dollar Currency Index
I love K.I.S.S charts (keep it simple stupid).

Why? Because they help clear all the mud out of a chart and the over analysis. Analysis is great and I love it when it comes to charts and technical analysis . However, too much analysis is sometimes too confusing and cloudy. Ultimately we want clarity as much as possible.

For me clarity comes from the long term chart time frames a strong respect for price and tape action behavior predictors and then sometimes forward looking events.

Lets get the forward looking event out of the way first. USA election 2016 in November. From my point of view there is zero doubt that this election is going to mark a dramatic shift in policy and decision making for the USA. I hate to get into politics discussion but for me this is going to be a key driver and potential turning point for markets/economy and sentiment at least as far as the USA is concerned. And many times what the USA does sort of takes the rest of the world down the rabbit hole too.

So having said that, now we confront the current bullish stance of the USA dollar index             . On the weekly and daily time frames the US dollar index             appears to be in large cup and handle formation ready to break out north of typical 100 resistance. This also resembles a high tight flag with the previous vertical leg about 9 trading months. If we project a typical A B C follow move that continues in time symmetry then we can project that the next major leg duration of the US Dollar index             is likely to be about 9 months. I have no idea if we will get the full 9 month rally again or if it will be just 6 months. Or perhaps it will be 11 months right into the election. Either way, it makes sense for the dollar to turn near the election as new policies and chaos from Washington confronts the markets.

The inverse of the dollar is gold             . Gold             is weak obviously. It looks like gold             wants to dive down to near long term trendline support between 875 and 900. Of course it does not have to touch this up trendline . It could reverse before it. Perhaps this depends on how cumbersome (or not) the us dollar             move north is. I suspect that the gold             price will make some type of inverse head and shoulders pattern to cement the bottom. The alternative is a V shaped spike bottom as in the 1975 case, however this looks less likely to me as now there are many more stakeholders in these markets.

So the bottom line is that gold             is looking like it wants to find a FINAL low in 2016 ideally towards the mid to 3/4 point of 2016. This would present an opportune time to keep powder dry and build more powder for the so called 'buy of a lifetime'.

If you like this chart please hit the like button (thumbs up) in the top left corner of the chart !!!
I am in agreement
EN English
EN English (UK)
EN English (IN)
DE Deutsch
FR Français
ES Español
IT Italiano
PL Polski
TR Türkçe
RU Русский
PT Português
ID Bahasa Indonesia
MS Bahasa Melayu
TH ภาษาไทย
VI Tiếng Việt
JA 日本語
KO 한국어
ZH 简体中文
ZH 繁體中文
AR العربية
Home Stock Screener Forex Signal Finder Cryptocurrency Signal Finder Economic Calendar How It Works Chart Features House Rules Moderators Website & Broker Solutions Widgets Stock Charting Library Feature Request Blog & News FAQ Help & Wiki Twitter
Profile Profile Settings Account and Billing My Support Tickets Contact Support Ideas Published Followers Following Private Messages Chat Sign Out