With 10year treasury yields under pressure, high inflation, with expectation of a higher inflation print this coming Thursday, together with a weak dollar, this inverse head&shoulders pattern (hourly graph) has a very high potential of taking gold even higher.
Together with the ZAR that has reached a short-term bottom, I am bullish on gold miners having another bull run.
With Gold falling below its November low of 1862, we might get short term bearish on the price of gold.
Bond yields are rising for 2 potential reasons; economic growth or inflation outlook.
Though short-sighted wallstreet may think a major recovery is on the cards, the US market was in dire straights before covid already.
Inflation prospects is thus...
Earlier this week the DXY has tested the support line and jumped off it.
It has now retraced 50% of that move.
If we test the yellow support line again, we have a right shoulder of the bigger pattern, and a completed head for a smaller head & shoulders (as part of the right shoulder of bigger pattern).
This is bearis for the dollar...great for gold.
SA Banks going lower quite a bit in the near future becomes a greater possibility:
1. DOLLAR seems to make a short term correction so we might see a weaker RAND which in turn is not good for banks.
2. The recent bank results were not good regarding provisions.
3. And then obviously the descending triangle.
If the triangle plays out chances are good I will do...
A descending triangle exists on Netcare.
Within this triangle we have a head & shoulders pattern.
Breakdown of these two patterns could result in prices between R9 - R11. I believe this will be a fall and immediate correction to retest the bottom of the descending triangle, so perhaps there is a short term trade in Netcare, for those with the necessary apitite.
With the dollar being so oversold (for good reson perhaps), it seems like the dollar is making a short term correction, leading to lower commidity prices.
Have a look at the blue line indicating the neckline of a potential Head & Shoulders on the gold price.
There might be a very nice entry point into gold and silver in the very near future.
The EUR/USD has now started braking down indicating a strenthening of the US Dollar .
The head and shoulders pattern has now braken the right shoulder and the neckline has been tested and respected as resistance.
Strenthening US Dollar coinside with the US markets having another down day.
With GOLD & SILVER being very volitile the last 24hours, we might see a...
Going short on the S&P 500 is a good call for the following reasons:
1. Price is nearing short daily resistance at the yellow horisontal line.
2. On 4 hour chart, you will see the rising wedge formation it currently trades in.
3. Using the TD indicator, is is currently on a perfected 8, though this 8 is actually the second TD 8 in a consitant move up so it...
Harmony Gold has come down 27% since last week's price of R72.
Case for short term upside in Harmony Gold:
Harmony closely correlates to the Rand Gold price.
1. DXY Dollar Index is extremely oversold on the RSI, way off its 50-day moving average together with a big perfected TD 8 0f 9 candle which indicates a potential turnaround candle tomorrow. This...
The dollar index has broken medium term trend lines to the downside.
Case for short term upside:
1. It is current EXTREMELY oversold on the RSI.
2. It has fallen far below its 50 day moving average.
3. TD Indicator is on a perfected 8 of 9 with the 8 daily candle being a big one. Potential capitulation here for a turnaround tomorrow on the TD 9.
Oil has had a pretty good run the last month however it seems like a head & shoulders - right shoulder is in the making.
If the pattern breaks down, we might see a move down to a pattern projected and horisontal price support around $29.
This correction will be healthy and support another buy-in into SBAOIL.
The Rand had a good run the last 2 weeks but the following reasons may hint to a price support at current levels:
1. Price currently at 50% Fib Retracement level.
2. Horisontal price support from 2 months ago.
3. TD indicator on a perfected daily 9.
4. RSI at extreme low levels.
5. Triangular pattern plays out at current levels.
Can the Rand strengthen...
So we have an inverse head and shoulders ons gold (GC1!) 15min chart - positive
We have a descending triangle on the same chart, negative.
We have a semetric triangle on the same chart.
If inverse head & shoulders plays out, its real bullish for price of gold to continue to $1600.
Play-out of the other two formations might only be a short term correction.
If Gold breaks to the upside above the blue line, $1570 is on the cards for gold, which in itself is VERY bullish for gold testing $1600 again.
Take on gold mining positions if you want a geared position.