XAU - Gold - The worm is turning (correcting typo)

FX_IDC:XAUUSD   Gold Spot / U.S. Dollar
Precious metals had a good week last week, and the end of the corrective period from August 2020 MAY be coming to an end. As per previous posts - closer in look - double bottom - we have re-entered the wedge - momentum is good and we are coming out of the top of the bullish wedge already. Ideally we should allow a couple more trading days to make sure this holds.....and the price action today so far is looking positive. In the short term exposure should be careful, but some fresh/aggressive money may want to start building long positions (not too much). We then want to see the stocks pick up leadership - if you look at NEM and ABX which is where the big money allocators will go to first, they are close to breaking out of bullish flags - again not in the bag yet, but the large caps should lead the small caps....initially. DXY is bouncing down from the channel (see previous post) which is supportive. Any positioning at the moment should be conservative - the very bullish positioning will only take place when the flags on the stocks and GDXJ / GDX have broken north. We want to see the stocks picking up leadership of the underlying metals prices. Cautiously bullish now, but low on the risk scale.

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